Fed's Powell: Shrinking balance sheet should take 3-4 years

Following his prepared speech before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, Fed Governor and future Chairman Jerome Powell is responding to questions from committee members, with key quotes (via Reuters) found below.

Fed's balance sheet will be much smaller than current level when it reaches equilibrium size.

Shrinking balance sheet should take 3-4 years.

Public demand for liabilities will determine final size of balance sheet.

Expects balance sheet to be $2.5-3 trillion.

Tailoring of regulation is a fundamental principle.

Taking a fresh look at tailoring of regulation, including in capital requirements.

Volcker Rule can apply more strongly to bigger banks.

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About Jerome Powell (via federalreserve.gov)

Jerome H. Powell took office as a member of the Board of Governors of the Federal Reserve System on May 25, 2012, to fill an unexpired term. He was reappointed and sworn in on June 16, 2014, for a term ending January 31, 2028.

Prior to his appointment to the Board, Mr. Powell was a visiting scholar at the Bipartisan Policy Center in Washington, D.C., where he focused on federal and state fiscal issues. From 1997 through 2005, Mr. Powell was a partner at The Carlyle Group.