Institución: La declaración de Wash ya muestra una tendencia a la reducción de tasas

Golden Finance report, April 22nd, China International Capital Corporation (CICC) research report states that Federal Reserve Chair nominee Kevin Woorh attended a Senate Banking Committee hearing, revealing a core policy stance of “balance sheet reduction and rate cuts” running in parallel: on the asset-liability side, he explicitly opposes normalizing quantitative easing (QE), advocating for a gradual and orderly shrinking of the Fed’s balance sheet, exiting fiscal-like responsibilities, and returning to a focus on monetary policy; on the interest rate side, although he did not make a clear commitment, his statements already show a tendency towards rate cuts.
In our view, Woorh’s policy stance is not only an adjustment of the monetary issuance mechanism but also an extension of the “America First” strategy in the monetary field under the wave of de-globalization—shifting from a “global central bank” that endlessly supplies liquidity worldwide to a new approach that firmly controls the total monetary gate, focuses on domestic productivity, and emphasizes monetary sovereignty.
We believe this shift implies that the narrative of continuous excess liquidity of the dollar will need correction, and assets that rely solely on liquidity-driven benefits or have benefited from “excess dollar issuance” may face pressure.
(Jin10)