US Treasury’s Bessent says Fed will take its time on balance sheet moves
#Federal Reserve #Scott Bessent #Balance Sheet #Treasury Department #Quantitative Tightening #Monetary Policy #Financial Markets
📌 Key Takeaways
- Treasury Secretary Scott Bessent signaled that the Federal Reserve will not rush future balance sheet reductions.
- The cautious approach is designed to prevent liquidity shocks and ensure stability in the U.S. treasury markets.
- Quantitative tightening remains a long-term goal but will be handled with high levels of transparency.
- The coordination between the Treasury and the Fed aims to balance inflation control with sustainable economic growth.
📖 Full Retelling
🐦 Character Reactions (Tweets)
Economic WhispererThe Fed's balance sheet moves slower than my grandma at a buffet. #QuantitativeTightening #TakeYourTime
Bond Market GuruBessent says Fed will take its time on balance sheet moves. Translation: 'We're not in a hurry to crash the party.' #FedPolicy #NoSurprises
Inflation WatcherFed's patience with balance sheet moves is like waiting for a slow cooker to finish. #EconomicStability #SlowAndSteady
Market MavenBessent's speech: Fed's balance sheet moves will be slower than a snail on a vacation. #FedSpeak #MarketStability
💬 Character Dialogue
🏷️ Themes
Economic Policy, Monetary Stability, Government Finance
📚 Related People & Topics
Balance sheet
Accounting financial summary
In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, a private limited company ...
Department of the Treasury
Topics referred to by the same term
Department of (the) Treasury or Treasury Department may refer to: Department of the Treasury (Australia) Department of Treasury and Finance (South Australia) Department of Treasury and Finance (Victoria) Department of Treasury (Western Australia) Department of the Treasury (Isle of Man) Puerto Rico...
Federal Reserve
Central banking system of the US
The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to th...
Scott Bessent
American businessman and government official (born 1962)
Scott Kenneth Homer Bessent ( BESS-ənt; born August 21, 1962) is an American businessman and government official serving since 2025 as the 79th United States secretary of the treasury. Bessent was a partner at Soros Fund Management (SFM) and founded Key Square Group, a global macro investment firm. ...
📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’ Gold, silver prices rise amid U.S.-Iran tensions, blowout January payrolls data Dow halts three-day win streak as blowout jobs data curbs rate cut bets Citi pushes back Fed rate cuts to May after blowout January jobs report (South Africa Philippines Nigeria) US Treasury’s Bessent says Fed will take its time on balance sheet moves Economy Published 02/08/2026, 10:49 AM Updated 02/08/2026, 11:30 AM US Treasury’s Bessent says Fed will take its time on balance sheet moves 4 By David Lawder WASHINGTON, Feb 8 - U.S. Treasury Secretary Scott Bessent said on Sunday he would not expect the Federal Reserve to move quickly to shrink its balance sheet, even under Fed chief nominee Kevin Warsh, who has criticized the U.S. central bank’s bond purchases. Bessent said on Fox News Channel’s "Sunday Morning Futures" program that the Fed could take up to a year to make decisions on its balance sheet, adding that Warsh will be a very independent Fed chief. "That will be up to the Fed in terms of what they want to do with the balance sheet," Bessent said. "I wouldn’t expect them to do anything quickly if they move to an ample regime policy, and that does require a larger balance sheet. So, I would think that they’ll probably sit back, take at least a year to decide what they want to do." The Fed vastly expanded its balance sheet during the global financial crisis and the COVID-19 pandemic to push down long-term interest rates, to a peak of $9 trillion in the summer of 2022 before allowing its holdings to run down -- a process called quantitative tightening -- to $6.6 trillion in late 2025. But in December, the Fed started to grow the stock of bonds it holds again via technical purchases of Treasury bills in a bid to ensure there was enough liquidity in the financial system to provide firm control over its interest rate target range. Warsh, who served ...