Federal Reserve Chair: Any Changes to Balance Sheet Policy Will Be Announced in Advance

Odaily reported that Federal Reserve Chair Warsh stated during a House hearing that the Fed has the commitment, capability, and responsibility to fulfill the tasks assigned by the committee, and will adhere to its duties and remain apolitical. Several working groups he established are currently in the investigation phase, with external working groups first sharing their findings with policymakers and conducting public discussions. He has instructed the 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 Fed must perform its duties well to avoid interference from fiscal policy. The balance sheet framework has undergone significant changes, and the Fed is honored to be an independent central bank. He understands that during times of crisis, central banks need to intervene in the markets.