- Fed's balance sheet totals about $6.5 trillion, with reserves accounting for roughly $3 trillion of liabilities.
- Proposals to shrink the balance sheet could unintentionally increase the Fed's market footprint and raise financial stability risks.
- Monetary policy is conducted via an ample‑reserves regime, primarily using the interest on reserve balances (IORB) rate.
- Reserves are costless for the Fed, support payment system liquidity, and help banks meet high‑quality liquid asset requirements.
May 14, 2026
– 4
Central Banks 4
- Stephen I. Miran resigns from Federal Reserve Board, effective upon successor's swearing-in
- Miran served since September 2025, filling an unexpired term ending January 2026
- Formerly chaired Trump's Council of Economic Advisers and worked at Treasury and Hudson Bay Capital
- 639 community banks serve the Fed's 10th District, many in rural areas.
- CECL accounting and Regulation O impose disproportionate compliance costs on small banks.
- Bowman urges the Fed to adopt tailored supervisory requirements focused on material financial risks.
- Community banks are partnering with fintechs and innovating mobile banking solutions despite competition.
- Survey of 300+ banks (median assets <$5bn) shows reserve balance strategies and discount window views
- Second survey (top 75% of reserve balances) conducted with NY Fed in March 2026
- Results aim to inform Fed policy on liquidity tools and balance sheet management
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