Milan: The Federal Reserve needs to reduce its balance sheet to create space for market rescue, but the process is slow

According to Jinshi reports, Federal Reserve Governor Milan stated that the Federal Reserve's balance sheet needs to be reduced, but this should not rule out the possibility of large-scale asset purchases during an economic crisis. He pointed out that shrinking the balance sheet would reduce the Federal Reserve's influence in financial markets and provide more options for future crises. Milan emphasized that, although he supports the reduction plan, this process cannot be completed immediately and many regulatory hurdles need to be overcome.