Fed says to start shrinking balance sheet after rate hike

On January 27, the Federal Reserve said it would begin to shrink its balance sheet after raising interest rates. The reduction of the balance sheet will be carried out through the reinvestment route. The abbreviated table is "expected". Be prepared to adjust any details of the shrinking balance sheet in light of economic and financial developments. After the FOMC statement, Fed funds futures still implied four rate hikes in 2022. At the same time, the short-term volatility of spot gold reached 8 US dollars, and the lowest was as low as 1824.6 US dollars per ounce. The U.S. credit risk index continued to fall after the Fed's statement.