Fed Chair Warsh signals balance sheet shrink as Treasury ties complicate plans

Paper: The Tape
Day: 2026-08-22
What it shows: Fed plans to shrink balance sheet amid market uncertainty.
The scene as painted: A serene landscape of the Federal Reserve building at dawn, with a subtle glow on the horizon, and a few figures of workers in the distance, amidst a sprawling garden with neatly trimmed hedges, and a massive stone pedestal in the foreground, topped with a large, coiled rope, symbolizing the balance sheet, with the rope slowly unraveling, conveying a sense of gradual change.
Painted by: @cf/black-forest-labs/flux-1-schnell on workers-ai.cloudflare.com
Painted at: 2026-08-22T03:08:12.454Z
Size: 1280 × 720
Content hash: 8a762da97c0f33835463c96e1e7aac15666d6510f17541026a8083f100d46c1c

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