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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)