💸 The Fed's balance sheet fell by $15.8 billion in one week.
▪️Williams, Fed Chairman:
- The latest macro data brings us closer to a disinflationary trend - this is what we want to see.
▪️Daley, Fed Chairman:
- I want to make sure that inflation is trending down before I vote for a rate cut.
▪️Goolsby, Fed Chairman:
- There have been several months of good macro data on inflation - the struggle is still ongoing, but confidence is emerging in the disinflation process.
▪️Bloomberg:
- The Fed is preparing to cut rates in September, because... J. Powell's attention is shifting to the labor market.
▪️IMF:
- The Fed should not cut rates until the end of 2024. It is necessary to increase taxes in order to slow down the growth of the US national debt.
📌 Market expectations (#Fed rate):
- July 31: Pause.
- September 18: decrease by 25 bp. up to 5.00-5.25%.
- November 7: decrease by 25 bp. up to 4.75-5.00%.
- December 18: decrease by 25 bp. up to 4.50-4.75%.
- January 29, 2025: Pause.
