#WalshSaysToCautiouslyShrinkBalanceSheet Warsh has frequently criticized the Fed's bond purchases, arguing that such purchases undermine the overall financial condition of the economy. Instead, he has advocated for shrinking the Fed's balance sheet.
Following a massive campaign to expand its balance sheet to support the economy during the global financial crisis and the COVID-19 pandemic, the Fed allowed its balance sheet to shrink from levels that reached $9 trillion in 2022 to $6.6 trillion late last year. However, the Fed began expanding its balance sheet again in December to ensure suffi