Fed's Miran lays out path to shrink central bank balance sheet further - Reuters

Miran's balance sheet reduction roadmap signals the Fed wants to drain more liquidity from the system. When they shrink the balance sheet, they're pulling dollars out of circulation that previously bid up asset prices. This creates short-term headwinds for gold as fewer dollars chase the same ounces. But here's the stacker angle: reduced liquidity makes markets more volatile and fragile. The Fed's own data shows they can only shrink so much before something breaks. Every previous quantitative tightening cycle ended with them reversing course and printing even more. Central banks globally are still net buyers of gold at record levels. They know what's coming next.