Warsh Forms Task Force on Fed’s $6.7 Trillion Balance Sheet (1)

Federal Reserve Chairman Kevin Warsh said he is appointing a task force to examine the central bank’s $6.7 trillion balance sheet, a first step in addressing a policy issue he has long criticized.

Warsh said one of the independent task forces he is forming will “review the benefits and risks of the current ample reserves regime and the composition of the balance sheet.” His announcement came at a press conference after the Federal Open Market Committee held rates steady at a range of 3.5% to 3.75% on Wednesday.

The focus on the balance sheet sharpens questions over how aggressively ...