Federal Reserve Bank of Boston: Replenishing Scarce Reserves Is Feasible, Said Powell With No Fed Plan

BlockBeats News, February 6: Boston Fed President said, "I think restoring a scarce reserve is feasible. No idea at all what Powell has in mind for the Fed's 'regime change'."

Note: After the 2008 financial crisis, the Fed adopted an "ample reserves" framework to stabilize the market; returning to a "scarce reserve" implies reducing reserves to pre-crisis levels, which may enhance monetary policy transmission efficiency but requires careful management of liquidity risk. Boston Fed's statement suggests confidence in further shrinking the balance sheet.