Federal Reserve Chair Powell Discusses Balance Sheet Flexibility

According to BlockBeats, Federal Reserve Chair Jerome Powell has expressed that the Federal Reserve possesses greater flexibility regarding the size of its balance sheet. He noted that removing the Fed's ability to pay interest would complicate interest rate management significantly. Powell indicated that the reduction of the balance sheet might be nearing its conclusion in the coming months. The Federal Reserve remains committed to maintaining a balance sheet composed solely of Treasury securities over the long term.