-
Fed's $6.6T Problem: The Next Chair's Key Test
As the market awaits President Donald Trump's pick for the next Federal Reserve chair, a critical question looms beyond interest rates: how will the new leader manage the central bank's colossal $6.6 trillion balance sheet? While Trump has consistently pressured current Chair Jerome Powell for deep rate cuts, the next nominee's stance on the Fed's asset holdings is just as crucial. The core debate is whether to continue buying Treasury bills to maintain liquidity or resume shrinking the balance sheet to pull cash out of the financial system. This decision directly impacts the core funding markets that the world's ... (full story)
- Comments / Top
- Subscribe
asoni
Jan 22, 2026 4:46am
Permalink
Trader#F68B
Jan 21, 2026 10:23pm
Permalink
-
Related Stories
President Donald Trump said Wednesday he is nearing the end of a search to replace Federal Reserve Chair Jerome Powell and hinted he has his candidate in mind. In a CNBC interview at the World Economic Forum in Davos, Switzerland, the president said a search that began in September and once included as many as 11 candidates is nearly over. Id say were ...
From thehill.com | Jan 22, 2026
Most economists are expecting the Federal Reserve to hold key interest rates steady, according to a Wednesday survey. A Reuters poll found that 58 percent of surveyed economists predict no change this quarter, while a majority expect two cuts later this year. In a narrow vote last month, the Fed cut interest rates to a range of 3.5 to 3.75 percent, marking ...