Fed's Miran lays out path to shrink central bank balance sheet further

What: Federal Reserve officials plan to reduce the central bank's balance sheet by $**500 billion** over the next year.
Why: The move aims to combat inflation and maintain economic stability.
Signal: The announcement suggests a continued hawkish stance from the Fed.
Target: The central bank's balance sheet is expected to reach $**4.5 trillion** by the end of 2026.
Risk: The aggressive reduction could lead to market volatility and potentially slow economic growth.