Analyst: Further reduction of the Federal Reserve's balance sheet will be gradual

The institution's hypothetical timeline is as follows: launch a plan around the end of this year, followed by a public comment period lasting until the second quarter of 2027, with the balance sheet runoff beginning in the fourth quarter of next year. Although Walsh has long called for a significant reduction in the Federal Reserve's presence in the asset markets, Wall Street strategists are generally skeptical about whether the central bank can meaningfully shrink its balance sheet. Expand