Pacific Investment Management Company: Federal Reserve meeting or adjustment of communication mechanism

Pacific Investment Management Company analyzed that Federal Reserve Chairman Kevin Walsh tends to weaken forward guidance, and market pricing logic is facing restructuring. Richard Clarida stated that investors are adapting to the communication style of Federal Reserve Chairman Kevin Walsh. Daniel Ivasin believes that communication contraction may increase market volatility, and balance sheet adjustments will have a more substantial impact than changes in communication methods. At present, the Federal Reserve's balance sheet is about $6.7 trillion. If the balance sheet reduction is adjusted in conjunction with the interest rate path, it may have an impact on the yield curve structure.