E Economics

10 Tweets That Suggest Fed Could Tweak Its Balance Sheet Policy Between Today and May

22 March, 2023
US Inflation

After the recent volatility in bank headlines, attention is shifting to Fed rate decision later today. Softer inflation data and broad uncertainty related to banking sector are settling market consensus around expectations for a 25bp hike. However, investors will mainly focus on whether the Fed’s balance-sheet policy receives any tweaking in light of recent developments (deteriorating liquidity, tightening of financial conditions, deposit outfllows, recession signals, etc.). In this context, several participants are looking for a change between today or next meeting (May).