Analyst: Waller's nomination may have a greater impact on the Federal Reserve's balance sheet

According to Jinshi News, eToro analyst Lale Akoner pointed out in a report that if Kevin Warsh is nominated as the Chairman of the Federal Reserve, the impact on the Federal Reserve's balance sheet may be greater than the impact on interest rate policy.

If Warsh takes office, the Federal Reserve may accelerate the balance sheet reduction process as soon as conditions allow. This expectation is related to the steepening of the yield curve and the short-term strengthening of the dollar.