Institutions: The Fed's discussion on balance sheet reduction may be as important as the Intrerest Rate outlook.

The July 30th data from Jinshi, TS Lombard analyst Steven Blitz said that the Fed officials’ remarks on balance sheet contraction may be as important as the Intrerest Rate outlook. In addition to maintaining high Intrerest Rates, the Fed has also been cutting its holdings of US Treasuries. During the COVID-19 pandemic, the Fed took the opposite approach. Now is the time for the Fed to start conveying more specific balance sheet contraction strategies. This topic may be detailed in the minutes of this meeting.

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