Golden Finance reports that Federal Reserve's Schmidt stated that the Fed may not achieve the 2% inflation target until 2026. The final stage of inflation dropping to 2% may be the most challenging for monetary policy. The Fed's quantitative tightening somewhat contradicts rate cuts. The Fed's balance sheet stance is still suppressing yields. Currently, actions to stop the reduction of the Fed's balance sheet will be opposed. There is a concern that measures to reduce the balance sheet could lead to volatility.