Fed Meeting Minutes Preview: May Signal Balance Sheet Reduction Nearing End
Jinse Finance reported that the minutes of the Federal Reserve's September meeting may show that officials are weighing whether to end the balance sheet reduction plan. The Federal Reserve has been reversing some of the pandemic-era stimulus measures by shrinking its balance sheet. However, Citi economists pointed out that movements in the interest rate market indicate that financing conditions have tightened, which may mean that the size of the balance sheet is close to the level the Federal Reserve desires. The Citi team wrote: "As liquidity declines, volatility in short-term interest rates has increased. This may prompt officials to at least discuss the possibility of eventually ending the balance sheet reduction."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Analyst: Recent pullback creates an "entry point"; a Fed rate cut would stimulate a crypto rebound
BitMine accumulated over 138,000 ETH last week, Tom Lee optimistic about Ethereum strengthening in the coming months
Goldman Sachs: The Federal Reserve will cut interest rates this week but maintain policy flexibility
