**[Milan Supports Balance Sheet Reduction to Create Future Crisis Response Space, But Process Won't Be Swift]** Golden Finance reports that Federal Reserve Governor Milan stated that the Fed's balance sheet needs to be reduced in scale, but this should not exclude the possibility of policymakers opting for large-scale asset purchases during an economic crisis. Milan pointed out that reducing the Fed's balance sheet would lessen its influence in financial markets and provide policymakers with more options in the event of a future crisis. In a podcast recording on Tuesday, Milan said: "When interest rates are at the zero lower bound and in the midst of a financial crisis, expanding the balance sheet is the right move. But you should 'keep your powder dry' for when such actions are necessary." Although Milan expressed support for a plan to gradually reduce the balance sheet over time, he emphasized that this cannot be accomplished immediately. Milan stated: "Before achieving this goal, we still have many regulatory hurdles to overcome in the process. This will take a long time; we can't start cutting tomorrow." (Jin10)