The probability of Kevin Wash being elected as the chairman of the Federal Reserve has increased. His tendency to reduce the balance sheet may put pressure on the financing market.

Trump will announce the new chairman candidate as early as next week, with former Federal Reserve board member Kevin Warsh seen as the most likely candidate to win. He has been critical of the central bank's current strategy. As investors eagerly await Trump's announcement of the next Federal Reserve chairman, a key question is emerging: how will the candidate manage the central bank's $6.6 trillion balance sheet? The current focus is largely on whether the new head of the Federal Reserve chosen by Trump will significantly reduce borrowing costs. But another major issue is whether the central bank should continue to purchase Treasury securities to maintain its balance sheet at its current level, or try to withdraw more liquidity from the financial markets. This choice has a direct impact on major markets, which are crucial for the daily borrowing activities among the world's largest financial institutions.