Powell Says Fed Has More Balance Sheet Flexibility — What That Means for Bitcoin

COINOTAG News reported on October 15 that Federal Reserve Chair Jerome Powell said the central bank has greater flexibility regarding its balance sheet size. Powell cautioned that removing the Fed’s ability to pay interest on reserves would complicate short‑term rate control mechanics, underscoring the operational importance of that tool for managing policy rates.

He also signaled that balance sheet runoff is expected to end or come close to completion in the coming months, and that the Fed will hold only Treasury securities on its balance sheet for the foreseeable future. The stance affects liquidity management and the transmission of monetary policy, as reserve supply and Treasury holdings are calibrated to support policy objectives without introducing undue market disruption.