The Federal Reserve's Harker said that the Federal Reserve should adjust its balance sheet to be all or mainly government bonds, and bank reserves are expected to contract rapidly. There is still a lack of clarity on the end point of the balance sheet reduction.
Telegram holds $400 million worth of cryptocurrency on its balance sheet.
The Federal Reserve's Harker said the end of the balance sheet reduction depends on the market, and the end of the easing cycle could keep the federal funds rate at about 3 percent.
The Federal Reserve Bank of New York published an article on Tuesday saying that the Fed's balance sheet is a "key tool" used to support the FOMC's monetary policy objectives and to "support financial stability on rare occasions." The Fed sets the monetary policy stance primarily by adjusting the target range for the federal funds rate, but the FOMC has previously helped ease overall financial conditions by buying Treasuries and agency mortgage-backed securities (MBS), especially when interest r...