💸 The Fed’s balance sheet shrank by $17.6 billion over the past week.
The Fed is currently in its “quiet period,” with no public comments from officials ahead of the upcoming policy meeting on May 7.
📌 Market expectations for the Fed (FOMC):
• May 7: No change (pause)
• June 18: No change (pause)
• July 30: 25 bps rate cut to 4.00–4.25%
• September 17: 25 bps rate cut to 3.75–4.00%
• October 29: 25 bps rate cut to 3.50–3.75%
• December 10: No change (pause)