Fed Governor’s Balance Sheet Reduction Remarks Debunked

Recent reports suggesting Federal Reserve Governor Christopher J. Milan might discuss balance sheet reduction have been refuted by primary sources. While market reactions remain muted, the Fed is currently focused on rate cuts. This shift in policy directly opposes the reported stance on further balance sheet contraction. 25 basis point rate cuts are a priority for now, leaving the potential for balance sheet changes out of the picture. 10-year treasury yield, currently at a low near 4.5%, is expected to remain stable despite market uncertainty surrounding Fed policy decisions.