Balancing Act: Fed's Hammack Eyes Steady Balance Sheet Cuts Amid Us Government Financial Uncertainty
Fed's Hammack says balance sheet drawdown likely to continue despite government finance uncertainty.Hammack says Fed can manage liquidity issues with temporary operations if needed.Hammack says a rate hike isn't in her base case.
- The ability of the Federal Reserve to navigate unprecedented government financial uncertainty without disrupting market stability suggests a significant shift in the central bank's approach to monetary policy, potentially redefining the parameters for future interest rate decisions.
- How will the Fed's continued commitment to quantitative tightening impact the nation's economic growth prospects if policymakers are unable to address pressing fiscal issues in a timely manner?