💸 The Fed's balance sheet has shrunk by $13.5 billion in one week!

▪️ Nomura:

- We expect the Fed to keep rates unchanged throughout 2025.

▪️ Goolsbee, Fed Chairman:

- I think there is no need to rush into adjusting the monetary policy (lowering/raising the rate).

- The Fed will lower interest rates within 12-18 months.

▪️ Bowman, Fed Chairman:

- I still expect the Fed to cut rates this year.

❗️Market expectations ( #FED ):

- January 29: PAUSE.

- March 19: PAUSE.

- May 7: PAUSE.

- June 18: a decrease of 25 bps to 4.00-4.25%.

- July 30: PAUSE.

- September 17: PAUSE.

- October 29: a decrease of 25 bp to 3.75-4.00%.

- December 10: PAUSE.