Story perspectives

Warsh Addresses Fed Balance Sheet Concerns Amid Regulatory Revisions

4/18/2026

Summary

Story summary

Kevin Warsh, chair nominee, addresses concerns about Federal Reserve (Fed)'s $6.6 trillion balance sheet.
Policymakers weigh regulatory changes to limit the Fed's market role and broaden financial regulation.
Governor Stephen Miran and Vice Chair Michelle Bowman back liquidity-rule revisions, while Dallas Fed President Lorie Logan cautions against reopening capital rules.
The discussion now centers on how many reserves banks need, with reforms proposed to cut reserve demand without market stress.

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Story summary

Kevin Warsh, chair nominee, addresses concerns about Federal Reserve (Fed)'s $6.6 trillion balance sheet.
Policymakers weigh regulatory changes to limit the Fed's market role and broaden financial regulation.
Governor Stephen Miran and Vice Chair Michelle Bowman back liquidity-rule revisions, while Dallas Fed President Lorie Logan cautions against reopening capital rules.
The discussion now centers on how many reserves banks need, with reforms proposed to cut reserve demand without market stress.