FED: balance is growing, and forecasts are changing

In the last week, the balance of the Federal Reserve System of the United States demonstrated an increase of $9,595,000,000.

🎙 Christopher Waller, member of the Board of Governors of the Fed:

• Energy risks: A prolonged maintenance of high energy prices may provoke a jump in core inflation.

• Labor market: Current employment statistics raise doubts about the real 'healthy' situation in the economy.

• Rate outlook: If the labor market continues to show weakness, I am ready to vote for a reduction in interest rates closer to the end of the year.

• Policy rigidity: At this point, I see no prerequisites for further rate increases.

🎙 Michelle Bowman, member of the Board of Governors of the Fed:

• Geopolitics: It is currently too early to draw conclusions about how the conflict with Iran will affect U.S. monetary policy.

• Economic expectations: Despite challenges, I forecast confident economic growth throughout this year.

• Course for 2026: My main scenario anticipates three phases of interest rate cuts in 2026.