Fed Speech · Miran

What the statement says

Dovish tilt: Miran stresses balance sheet reduction is feasible but must proceed slowly; explicitly rejects immediate return to scarce reserves

• Explicitly calls balance sheet reduction 'a solvable challenge' (quote), rejects 'impossibility' narrative, but stresses prerequisite policy reforms must precede actual reduction.
• Proposes target balance sheet size at 15–18% of GDP—'loosely speaking, $1 trillion to $2 trillion of reduction'—and states this level 'does not necessarily mean returning to scarce reserves'.
• Insists on 'going slowly' ('hard to overemphasize how important this is'), prioritizing runoff over outright sales, and would only sell securities 'if we saw them trading at a profit'.
• States balance sheet reduction 'has contractionary effects for the economy' through two channels, implying resumption may warrant 'additional reductions in the federal funds rate relative to baseline projections'.
• Clarifies views are 'my own' and 'not necessarily those of [FOMC] colleagues'; leans toward 'reducing demand but retaining ample reserves', but explicitly notes 'it's not a firmly held conviction'.

AI-generated summary of the official text. The official statement is authoritative. Not investment advice.