Vice Chairman, Financial Supervisory Service:

February 15th
Vice Chairman, Financial Supervisory Service:

1. The FOMC is confident that it is on a path to 2% inflation.
2. I fully support a cautious approach to policy normalisation.
3. I need to see good data that continues before the start of the rate cut.
4. The FOMC plans an in-depth discussion on the balance sheet issue soon.
5. The Fed’s balance sheet contraction is going smoothly, and its reserves are sufficient.
6. Significant reverse repo serves as a buffer, and I am pleased that the use of the standing repo facility is steadily increasing.
7. There are no signs of liquidity problems throughout the financial system, and the situation is being monitored carefully.
8. The January CPI report reminds us that the road to 2% inflation could be bumpy.
9. The soundness of the banking system is resilient, and risks include parts like commercial real estate.
10. January indicators showed stronger-than-expected strength in both employment and inflation, and the Fed is looking at the overall numbers.
11. Data suggests the Fed is on a good path, but shows it’s still too early to say a soft landing.
12. High interest rates have dampened both sales and purchases of existing homes.

• The end of the reduction of the valcit is not long before February 15
  Waller Director:

1. Forward guidance will also have to inform the possible path of policy rates.
2. One of the lessons from 2020 is that forward guidance needs to be more flexible.
3. The Fed’s guidance may have been too limited.

• Waller’s move is more realistic…
  But in the end, it’s a luxurious expression of “I don’t even know.”