- Reported Fed Governor remarks on balance sheet refuted by primary sources.
- Fed focuses on rate cuts, impacting crypto markets.
- Xinhua News Agency article attribution remains unconfirmed.
On November 19, reports surfaced claiming Federal Reserve Governor Christopher J. Milan may potentially discuss balance sheet reductions, though no official source confirms this statement.
This report raises concerns in financial circles, potentially impacting cryptocurrency markets despite lacking verification from the Federal Reserve or Milan, underscoring market sensitivity to Federal Reserve policy speculation.
Unverified Fed Statements Stir Market Debate
Federal Reserve Governor Milan’s purported comments on future balance sheet reduction remain unverified. This attribution, reportedly by Xinhua News Agency, lacks supporting evidence from any primary source, including the Fed or Milan’s official communications.
The Federal Reserve’s current policy involves concluding balance sheet reduction by December 1, 2025, while focusing on rate cuts of 25 basis points. This decision directly opposes the reported stance on further balance sheet contraction.
“We are ending the balance sheet reduction as planned. Our focus is on maintaining ample reserves and supporting market stability. There are no current plans to resume balance sheet reduction.” — Jerome Powell, Chair, Federal Reserve
Market reactions have been muted because primary sources, such as official Fed statements, have not corroborated the claim. Notable figures, including Binance CEO Changpeng Zhao, highlight that ending quantitative tightening is favorable for crypto, as seen in resilient market behavior.
Crypto Markets Respond to Fed’s Rate Focus Over Sheet Reduction
Did you know? The Federal Reserve’s policy shifts, such as the 2020–2022 QE expansion, increased the balance sheet to $9 trillion, contrasting with recent focus on rate cuts over balance sheet changes.
Bitcoin (BTC) maintains its market dominance at 58.48% with a current price of $92,049.09 and a market cap of formatNumber(1836419852604, 2). BTC’s 24-hour volume decreased to formatNumber(70157039195, 2), with weekly and monthly declines continuing as of November 19, 2025, per CoinMarketCap.
Insights from Coincu suggest that ongoing Fed rate cuts will support crypto resilience. Potential regulatory changes might arise, but core developments hinge on monetary policy actions. Remaining uncertainties highlight the critical role of substantiated Fed announcements in shaping market expectations.
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Source: https://coincu.com/markets/fed-balance-sheet-rumors-unfounded/