Bill Nelson on Shrinking the Fed's Balance Sheet and Reviving Interbank Markets

比尔·尼尔森谈缩小美联储资产负债表与振兴银行间市场

Macro Musings with David Beckworth

2026-08-17

55 分钟
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Bill Nelson is chief research officer and chief economist at the Bank Policy Institute and a former deputy director of the Division of Monetary Affairs at the Federal Reserve Board. In Bill's 11th appearance on the show, he discusses how central banks are rethinking their operating systems, the case for a smaller Fed balance sheet and more routine discount window borrowing, the revival of interbank markets, lessons from Silicon Valley Bank, and much more. Watch the full length video on our new YouTube Channel! Check out the transcript for this week's episode, now with links. Recorded on July 20th, 2026 Subscribe to David's Substack: Macroeconomic Policy Nexus Follow David Beckworth on X: @DavidBeckworth Follow the show on X: @Macro_Musings Check out our Macro Musings merch! Timestamps 00:00:00 - Intro 00:01:29 - Bill's Work with Central Banks Abroad 00:11:03 - Reducing the Fed's Balance Sheet 00:30:28 - Fed's Use of a Demand-Driven System 00:40:40 - Voluntary Reserve Target 00:54:31 - Outro
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  • Welcome to Macro Musings, where each week we pull back the curtain

  • and take a closer look at the most important macroeconomic issues of the past, present, and future.

  • I am your host, David Beckworth, a senior research fellow with the Mercatus Center at George Mason University,

  • and I'm glad you decided to join us.

  • Our guest today is Bill Nelson.

  • Bill is a chief research officer and chief economist at the Bank Policy Institute.

  • Bill is also a former deputy director of the Division

  • of Monetary Affairs at the Board of Governors at the Federal Reserve System.

  • Bill joins us today to discuss the latest developments in balance sheets

  • and operating systems at central banks around the world, and especially at the Federal Reserve System.

  • Bill, welcome back to the program.

  • Thank you, David.

  • It's always fun to be here.

  • It's always great to have you, Juan, because we share a common interest, maybe a common passion.

  • And central bank balance sheets and operating systems.

  • And I was thinking back to the first time I met you, Bill.

  • I believe it was an AEI event, American Enterprise Institute event.

  • And we were on a panel discussing the Fed's operating system.

  • We first met then.

  • It was George Selgin, yourself, me, and then the host.