Fast Take
Information from FRED exhibits that the Federal Reserve’s steadiness sheet has elevated by $2.6 billion to $7.2 trillion. Regardless of the Fed’s ongoing quantitative tightening, there have been intermittent intervals of stagnation or development within the steadiness sheet. Nonetheless, the long-term pattern stays downward.
The steadiness sheet peaked at $9.0 trillion within the second quarter of 2022, indicating a roughly 22% discount over the previous two years. Pre-pandemic, the steadiness sheet stood at $4.2 trillion, reflecting an over 50% improve since then.
As the top of the rate-hiking cycle approaches, hypothesis in regards to the Federal Reserve’s first price minimize is mounting. This hypothesis has intensified following the Client Worth Index (CPI) inflation print on July 11, which recorded a deflationary headline price month-over-month at -0.1%. The lower in CPI inflation suggests a cooling economic system, probably prompting the Fed to think about a price minimize. The steadiness sheet and inflation traits will likely be essential in shaping the Fed’s financial coverage choices within the coming months.
The put up Federal Reserve steadiness sheet rises amidst looming price minimize hypothesis appeared first on CryptoSlate.
