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Options for reducing the size of the Fed’s balance sheet
Abstract: Some observers have argued that the Federal Reserve’s balance sheet is too large and complicates the central bank’s operations. We catalog options for reducing the Fed’s major liabilities, which help determine the size of the balance sheet, as well as a framework for assessing the costs and benefits of those options.
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https://www.dallasfed.org/research/economics/2026/0402
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Provider: Federal Reserve Bank of Dallas
Source: Dallas Fed Economics
Publication Date: 2026-04-02
Note: This essay was published in conjunction with a speech, "The banking system and the demand for reserves," delivered by Dallas Fed President Lorie Logan.