Fed’s Waller Says Balance Sheet Can Drop to About $5.8 Trillion

Federal Reserve Governor Christopher Waller said the US central bank should be able to lower the level of bank reserves to around $2.7 trillion, from the current level of $3.26 trillion.

That, combined with Fed holdings for currency and the US Treasury’s general account balance, would put the overall balance sheet at $5.8 trillion, compared to the current $6.7 trillion.