💸 The Fed's balance sheet has shrunk by $29 billion in one week!

▪️ US Treasury Secretary J. Yellen:

– The labor market and inflation indicate that the US economy is on track for a soft landing.

– It looks like the Fed will continue to cut interest rates.

▪️ Head of hedge fund Appaloosa Management:

– The Fed rate cut gives the Chinese Central Bank better opportunities to implement its fiscal and monetary stimulus policies (inject liquidity).

– Now everyone is actively buying Chinese shares.

📌 Market expectations ( #FED ):

- November 7: a decrease of 50 bp to 4.25-4.50%.

- December 18: a decrease of 25 bps to 4.00-4.25%.

- January 29, 2025: reduction by 25 bps to 3.75-4.00%.

- March 19, 2025: reduction by 25 bps to 3.50-3.75%.