On November 14, Federal Reserve Chairman Schmid stated that further interest rate cuts could have a lasting impact on inflation, and the Fed may also shift its balance sheet portfolio towards short-term securities.
The Federal Reserve can support its relatively small balance sheet and alleviate liquidity pressures by lowering reserve interest rates and easing restrictions on the use of its standing repurchase facility. There is little reason to believe that reserve demand will grow steadily in line with nominal GDP. (Jinshi)





