Wassh: If the Federal Reserve adjusts its balance sheet, the market will receive sufficient advance notice

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Golden Finance reported that on July 14, Federal Reserve Chair Waller said that if the Fed adjusts its balance sheet policy, it will provide advance notice, explanations, and conduct public discussions, and allow financial markets ample time to prepare. At the hearing, Waller said that the public already knows his views on the Fed’s massive balance sheet issue, but he does not want to pre-judge the decisions that the Fed’s newly formed balance sheet special working group will make. He noted that the balance sheet falls within the scope of monetary policy and emphasized that the Fed should avoid getting involved in fiscal policy. Waller said: “I assure you that if there is a change in balance sheet policy, we will provide advance briefing, explanation, and discussion. Before any adjustments are made to balance sheet policy, whether it is this committee or the entire financial market, will receive sufficient advance notice.”
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