TechFlame News Federal Reserve Governor Waller said that the balance sheet size should continue to be reduced, including adjusting the asset structure to increase the share of short-term assets, but there may be no need for excessive cuts. “I think it is likely that we will continue to allow maturing and prepaid securities to naturally exit the balance sheet for some time to come, thereby reducing reserve balances,” Waller said in a speech prepared for the Dallas Federal Reserve event on Thursday. Waller advocated downsizing in his entire balance-sheet-focused speech, but the magnitude should be less than what some Federal Reserve observers and economists suggest. He suggested that currently bank reserves are still at an “adequate” level (higher than the “adequate” standard set by the Federal Reserve), and that the ideal size should be maintained at around $2.7 trillion. If you add the currency in circulation held by the Federal Reserve and the Treasury's general account balance, the total balance sheet size will reach 5.8 trillion US dollars, compared to the current size of 6.7 trillion US dollars.