Evening Market Dynamics and Federal Reserve Policy Impact

At 12 AM Beijing time, the Federal Reserve released its semi-annual monetary policy report, stating it will continue to reduce its holdings of government bonds and agency securities.

Since June 2024, the Federal Reserve has reduced its securities holdings by $297 billion, and the size of its balance sheet has decreased by about $2 trillion since the beginning of the balance sheet reduction.

This means that higher interest rates will be needed to issue government debt to fill the funding gap, leading to increased deficit financing costs.

The Federal Reserve is committed to reducing inflation and alleviating high interest rate pressures, while continuing to reduce its holdings of securities and bonds, which encourages high interest rates and may lead to further increases, creating a balance of effects.

In the long term, continuous balance sheet reduction may exacerbate U.S. debt issues, increase economic pressure, and potentially trigger fluctuations in financial markets. #币安Alpha上新 #非农就业数据来袭 #你看好哪一个山寨币ETF将通过？ #比特币后市 #币安上线BERA

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