Fed's Bowman: Further Rate Cuts Could Have lasting Impact on Inflation

BlockBeats News, November 14, Federal Reserve’s Schmieding said that further rate cuts could have a lasting impact on inflation, and the Fed may also be shifting its balance sheet portfolio towards short-term securities.

The Fed could provide support for a smaller-sized balance sheet and alleviate liquidity pressures by reducing the reserve interest rate and expanding the use of standing repo facilities. There is little reason to believe that reserve demand will grow steadily with nominal GDP. (FX678)