According to Jinshi reports, a research report from CICC stated that Federal Reserve Chair nominee Kevin Warsh revealed the core policy proposition of "simultaneous balance sheet reduction and interest rate cuts" during the Senate Banking Committee hearing.
He explicitly opposed normalizing quantitative easing and advocated for a gradual reduction of the Federal Reserve's balance sheet size. Although he did not make a clear commitment, his statements have shown a tendency towards interest rate cuts. This shift may indicate that the narrative of persistent dollar liquidity flooding will face correction.
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