Wall Street Is Sizing Up Warsh’s Options to Shrink Fed Portfolio

Federal Reserve Chair nominee Kevin Warsh has several paths toward reducing the central bank’s $6.6 trillion balance sheet but the process will be costly and lengthy, Wall Street strategists say. Warsh has called for dramatically paring the Fed’s massive financial footprint, rekindling the debate around the size of its portfolio which swelled after successive rounds of crisis-driven asset purchases. Minutes from the January policy meeting due Wednesday are likely to offer insights on policymakers’ latest ...