Bessent says Fed unlikely to rush balance sheet changes under Warsh

 U.S. Treasury Secretary Scott Bessent said he does not expect the Federal Reserve to move quickly to reduce the size of its balance sheet, even if Kevin Warsh is confirmed as the central bank’s next chair.

Speaking Sunday on Fox News Channel’s "Sunday Morning Futures," Bessent said decisions about the balance sheet rest squarely with the Fed and are likely to take time. He added that Warsh, a frequent critic of the Fed’s bond-buying programs, would operate independently if he takes the role.

“That will be up to the Fed in terms of what they want to do with the balance sheet,” Bessent said. “I wouldn't expect them to do anything quickly if they move to an ample (reserves) regime policy, and that does require a larger balance sheet. So, I would think that they'll probably sit back, take at least a year to decide what they want to do.”

Bessent’s comments suggest that even under new leadership, the Fed is unlikely to make abrupt changes to its asset holdings, signaling continuity rather than a rapid shift in policy direction.

https://www.msn.com/en-us/money/markets/bessent-says-fed-unlikely-to-rush-balance-sheet-changes-under-warsh/ar-AA1VVO9R