Federal Reserve Governor Waller: Can Discuss Balance Sheet Reduction if Reserve Demand Declines, Need to Avoid Creating Reserve Shortage

Gate News reports that on March 20, Federal Reserve Board member Waller made a policy statement, saying that if reserve demand decreases, the discussion of shrinking the balance sheet can be considered. He emphasized that the Federal Reserve has no reason to create a shortage of reserves. Waller also pointed out that an adverse economic shock could lead companies to start layoffs. Additionally, with rising oil prices, consumer prospects could also be affected.

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