world-economy

Warsh Creates Task Force to Reassess Federal Reserve's $6.7 Trillion Balance Sheet

Federal Reserve Chairman Kevin Warsh announced the formation of a task force to review the central bank's $6.7 trillion balance sheet during his first policy meeting Wednesday. The move addresses long-standing concerns Warsh has raised about the Fed's portfolio composition and structure. In his inaugural meeting, Warsh kept benchmark interest rates unchanged while signaling openness to rate increases later in 2026. The Fed's latest economic projections expect the federal funds rate to reach 3.75 percent by year-end. Oil price declines are expected to provide tailwinds for fixed income markets during Warsh's tenure. Restoring price stability remains a central policy objective under the new chairman.