Baumann: The Federal Reserve should maintain a small balance sheet and reform the monetary policy mechanism

ChainCatcher news, according to Jinshi reports, Federal Reserve Governor Bowman stated that the Federal Reserve should seek to achieve the smallest possible balance sheet size and comprehensively reform its monetary policy implementation mechanism. She tends to maintain the balance sheet close to scarcity levels, believing that returning to an active management mechanism would better reflect market pressures. Bowman supports the Federal Reserve holding only Treasury securities and suggests considering the active sale of mortgage-backed securities (MBS).