The most dovish speech of the year The benefits of ending the balance sheet reduction far outweigh the interest rate cuts I just came out after everything had gone up, shouting that the time was not good Federal Reserve Governor Waller: $2.7 trillion is a rough benchmark for the level of 'sufficient reserves'. External factors beyond the control of the Federal Reserve have pushed up the size of the balance sheet. Agree that the balance sheet of the Federal Reserve should indeed be reduced. The balance sheet may not necessarily need to be significantly reduced as some people believe. A sufficient reserve system helps stabilize the financial system. Paying reserve interest does not impose any cost burden on the Ministry of Finance. Once the reserve reaches a sufficient level, the Federal Reserve can increase its holdings of short-term Treasury bonds. We need to consider shifting the balance sheet structure towards short-term treasury bills.