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Federal Reserve Chair: Any Changes to Balance Sheet Policy Will Be Announced in Advance
Svmuu News: Federal Reserve Chair Wash stated at a House hearing that the Federal Reserve has the commitment, the capability, and the responsibility to fulfill the mandate entrusted to it by the Committee, and will remain focused on its core duties while staying out of politics. The various working groups he has established are currently in the investigative phase; external working groups will first share their findings with policymakers, followed by public discussions. He has instructed all working groups to return to first principles. The balance sheet is part of monetary policy, and any changes to balance sheet policy will be announced in advance. The Federal Reserve must do its job to avoid interference from fiscal policy. The balance sheet framework has undergone significant changes, and the Federal Reserve is proud to be an independent central bank. He understands that during times of crisis, the central bank needs to intervene in the markets.
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