💵 The Fed's balance sheet has shrunk by $43.4 billion in one week!

▪️ Collins, Fed Chairman:

- I think we should NOT lower the interest rate too quickly.

▪️ Cook, Chairman of the Fed :

- It is advisable to continue reducing the rate to a neutral level.

- But we can consider the PAUSE scenario, everything depends on macro data.

▪️ Bowman, Fed Chairman:

- The Fed should take a cautious approach to rate cuts.

- Inflation is a concern.

▪️ Barkin, Fed Chairman:

- The United States has become more vulnerable to inflation shocks.

- If inflation remains above our target, this will give reason to be more cautious in reducing the rate.

▪️ Goolsbee, Fed Chairman:

- It makes sense for the Fed to slow the pace of rate cuts.

❗️Market expectations ( #FED ):

- December 18: 25 bps decline to 4.25-4.50% (probability = 55.9%)

- January 29, 2025: PAUSE.

- March 19, 2025: PAUSE.

- May 17, 2025: PAUSE.