The Secretary of the Treasury of the United States, Scott Bessent, stated this Sunday that he does not expect quick actions from the Federal Reserve to reduce its balance sheet, even under the eventual leadership of Kevin Warsh, nominated for chair of the Fed and critic of asset purchases.
In an interview with Fox News, Bessent said that the Fed could take up to a year to decide what it will do with the balance sheet, emphasizing that Warsh should lead an independent policy. According to him, if the Fed maintains a regime of ample reserves, it will be necessary to sustain a high balance sheet, which reduces the likelihood of accelerated cuts.
The Fed's balance sheet peaked at US$ 9 trillion in 2022, following expansions during the financial crisis and the pandemic. Since then, it has been reduced to around US$ 6.6 trillion by the end of 2025. In December, the central bank resumed expanding its positions in Treasury securities through technical purchases to ensure liquidity.
Experts point out that an aggressive reduction of the balance sheet could contradict President Donald Trump's goal of keeping mortgage rates lower and pose risks to financial stability.
Redação Equipe ThaiTraderOficial
