Governor Waller signaled that the Federal Reserve should “accept change” and outlined an idea for a smaller master account he called slim. which he said would alter internal Fed operations. The remarks suggest a shift toward new tools or business models and touch banks, custodians and market rails.
The proposal remains at the idea stage. With no technical specifications or timeline, leaving firms to parse the direction of travel rather than a finished blueprint. Waller framed the moment as one where the Fed must face new shocks and turn them to its benefit.
He pointed to the “slim” master account without explaining how it would operate or which rules would govern it. From his description, it appears to be a pared‑down version of the normal master account built for a few key jobs only. A master account is the main pot the central bank uses to hold and move assets for approved firms; a slim version would do fewer jobs or serve fewer users.
No tech specifications, no dates, and no detailed rulebook were offered, so the plan lives or dies on later work inside the Fed. His remarks show a wish to bend Fed work around new tools, likely pushing staff to revisit who gets in, how firms are supervised, and how money settles—issues that directly touch banks, custodians and market rails.
What it means for traders and institutions
The plan raises a set of “what‑ifs” that hinge on how the Fed acts next, creating strategic questions for every player even as specifics remain open.
New gate rules: A “slim” master account could change who gets direct Fed access, shifting how banks and custodians manage cash on hand. A smaller Fed offer could leave gaps that private firms would have to fill or take over.
With no clear specs, firms face uncertainty about audits, checks, and compliance expectations. The call to “accept change” reads as a green light for new tech or market forms, yet it comes with no firm steps or dates.
Waller’s remarks open a debate about how flexible the Fed can be while leaving stakeholders waiting for rules and a calendar. For now, it is only a pledge with no fixed dates and no written rules, keeping attention on what the Fed does next.
