Economy· August 17, 2026 at 09:46 a.m.
Nelson Proposes Measures to Shrink Fed's Balance Sheet and Strengthen Interbank Markets
Key takeaways
- Former Senator Bill Nelson proposes measures to reduce Fed's balance sheet and strengthen interbank markets
- Proposals include gradual selling of Treasury securities and implementing a central counterparty system for overnight repurchase agreements
- Experts caution careful implementation to avoid market disruptions
In a discussion hosted by the Mercatus Center, former Senator Bill Nelson proposed measures aimed at reducing the Federal Reserve's balance sheet and revitalizing interbank markets. The proposals were presented as a means to address financial instability and promote economic growth.