💸 The Fed's balance sheet has shrunk by $27.1 billion in one week!

▪️ Collins, Fed Chairman:

- The Fed may NOT cut interest rates in December.

- I don't see any signs of inflation resuming.

▪️ Goolsbee, Fed Chairman:

- We need to start slowing the pace of Fed rate cuts.

- I don't think the Fed rate will return to the level it was before the pandemic.

- It is likely that the interest rate will have to be reduced within the next year.

❗️ Market expectations ( #FED ):

- December 18: 25 bps decline to 4.25-4.50% (probability = 58.7%)

- January 29, 2025: PAUSE.

- March 19, 2025: PAUSE.

- May 17, 2025: a reduction of 25 bps to 4.00-4.25%.