This week, the Fed pulled back $15.5 BILLION from its balance sheet — but that’s just the tip of the iceberg. Behind the numbers, top Fed officials are sending a clear message: the calm in the markets is about to shatter. ⚠️
Kashkari warns business uncertainty is the BIGGEST threat right now. Trade tariffs aren’t just annoying — they’re a toxic mix of slow growth AND rising prices… a perfect storm for stagflation. The longer these tariffs linger, the darker the clouds get. ⛈️
Williams says inflation is easing... but slowly. The labor market is tight but fragile. And trade policy? It’s the wildcard that could unravel everything. No quick rate moves — the Fed’s eyes are glued to every economic signal. 👀
Goolsbee throws a lifeline: if tariffs are off the table, rate cuts could come. But legal battles over trade threaten to keep the fog thick and the markets jittery. ⚖️
Daley wraps it up — labor market strong, inflation cooling but 2% target is out of reach this year. Policy steady... for now. But that tariff wildcard? It could flip the entire script overnight. 🔄
The Fed is shrinking its balance sheet, but the space for mistakes is vanishing fast.
Markets, buckle up. The next Fed move won’t just shake prices — it could ROCK the economy.