Fed Chair nominee Warsh’s attempt to shrink the Fed's balance sheet would proceed only slowly as he would face resistance over his plan to scale back one of the Fed's most powerful tools, according to FT

The report suggests that Fed Chair nominee Warsh may encounter significant pushback on his plan to gradually shrink the Fed's balance sheet, indicating a likely delay in the implementation of tighter monetary policy.

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Fed Chair nominee Warsh’s attempt to shrink the Fed's balance sheet would proceed only slowly as he would face resistance over his plan to scale back one of the Fed's most powerful tools, according to FT

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This scenario could maintain pressure on the USD and influence fixed income markets, as the expectation of a slower unwinding may keep rates lower for a longer period, affecting overall sentiment in risk assets.

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