Citigroup analyst: Walsh may adopt a gradual approach to reducing the Federal Reserve's balance sheet According to BlockBeats, on February 10th, Citigroup's strategist stated that Federal Reserve Chairman nominee Kevin Walsh may take a gradual approach to reducing the central bank's $6.6 trillion balance sheet to avoid reigniting tensions in the money market. Citi strategists Alejandra Vazquez Plata and Jason Williams believe that the Federal Reserve led by Walsh still has options to reduce its impact. The weighted average duration of treasury bond positions can be shortened by extending the positions of treasury bonds with longer maturities into short-term debt as the "path with the least resistance". This future chairman may reach a consensus among decision-makers and prioritize seeking the committee's support for interest rate cuts. In addition, the Federal Reserve can also choose to slow down its monthly Treasury bond purchases of about $40 billion or completely stop purchasing. Other options include allowing for natural maturity reduction of the mortgage-backed securities held. Citigroup expects the increase in interest bearing bond issuance to begin in November 2026, with the risk of delaying until February 2027. (Golden Ten)