Thoughtful Money with Adam Taggart · Thursday, July 2, 2026
Adam Taggart seeks clarification on Darius Dale's view that the Fed might use its balance sheet for tightening. Taggart notes this aligns with Kevin Warsh's known stance on reducing the balance sheet's size.
“Okay. Um, let me ask you a couple of questions around that. Then, so, if I heard you correctly, um, you think that rather than actually monkeying around with the rates as much, that they may actually use the balance sheet here. Um, that's the thing that Warsh leading up to all this seemed to say that he wasn't going to use. So I'm curious, do you think he'll, he'll kind of U-turn on that?”
“Uh, so I think I'll take a slightly different track, you know, we know Kevin Warsh's views on the balance sheet are that it's way too big. Right? So, uh, I think he would take any opportunity, uh, to reduce the balance sheet, uh, you know, if the committees on board with ending reserve management, uh, you know, some people would say.”
“Oh, I'm sorry, wait a minute. I'm looking at this the wrong way. Yeah, of course, tightening the balance sheet would be a total Kevin Warsh thing to do. I'm sorry. Exactly.”