<ul data-eligibleForWebStory="false"><li>Federal Reserve Governor Christopher Waller supports reducing the size of the US central bank's balance sheet and shifting its composition to include more short-term assets.</li><li>Waller mentioned that the balance sheet should shrink, but not as much as some Fed watchers and economists have suggested.</li><li>He indicated that the ideal bank reserves should be around $2.7 trillion to maintain an 'ample' level, which would result in a balance sheet of $5.8 trillion compared to the current $6.7 trillion.</li><li>The article suggests that Federal Reserve Governor Christopher Waller backs balance sheet runoff and a shift in composition to adjust the reserve balances to the appropriate levels.</li></ul>

Fed’s Waller Backs Balance Sheet Runoff, Shift In Composition

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