Returning to the current market focus: Will Warsh reduce the balance sheet after taking office? The recent market crash was due to panic selling about balance sheet reduction causing a liquidity crunch. Bessant couldn't help but speak out, but rather subtly, fearing the market would perceive the Fed as lacking independence. To fundamentally resolve this issue, Warsh himself needs to clarify his stance on balance sheet reduction. Until then, the market will likely remain in a consolidation-wait-and-see phase. P.S. US Treasury Secretary Bessant stated that he does not expect the Fed to act quickly on the balance sheet issue. He believes Warsh will remain highly independent.