#WalshSaysToCautiouslyShrinkBalanceSheet #WalshSaysToCautiouslyShrinkBalanceSheet — What It Means for Markets & Crypto
When Christopher Waller (often confused in hashtags as “Walsh”) suggests cautiously shrinking the balance sheet, he’s talking about the Federal Reserve reducing its asset holdings slowly — not aggressively.
This process is known as Quantitative Tightening (QT). It means:
Letting government bonds mature without reinvesting
Gradually reducing liquidity in the financial system
Avoiding sudden shocks to stocks, bonds, and crypto
🏦 Current Fed Policy Context
Fed Funds Rate: Still