According to online reports, Federal Reserve Governor Waller said that the size of the balance sheet should continue to be reduced, including adjusting the asset structure to increase the proportion of short-term assets, but excessive cuts may not be necessary. "I think we are likely to continue to allow maturing and prepayment securities to naturally exit the balance sheet for some time to come, thereby reducing reserve balances," Waller said in a speech prepared for the Dallas Fed's event on Thursday. Waller advocated shrinking the balance sheet throughout his speech, but at a smaller level than some Fed observers and economists suggest. He proposed that bank reserves are still at "sufficient" levels (higher than the "adequacy" standard set by the Federal Reserve) and that the ideal size should be maintained at about US$2.7 trillion. If the currency in circulation held by the Federal Reserve and the Treasury's general account balance are added, the total balance sheet size will reach US$5.8 trillion, compared with the current size of US$6.7 trillion.