Morgan Stanley: Under Powell's leadership, changes in the Federal Reserve will be reflected through balance sheet reduction and other policy adjustments, signaling a shift in monetary policy stance.

GateNewsBot

2026-02-02 15:37:32

ChainCatcher News, according to Jin10, Morgan Stanley stated in a report that under the leadership of Wosh, any substantial changes are more likely to gradually manifest through balance sheet policies rather than interest rates. Reducing the Federal Reserve’s balance sheet means lowering banks’ demand for reserves, a process that takes time and also requires adjustments to the regulatory framework. Morgan Stanley added that a Federal Reserve with a smaller “presence” should help push the yield curve toward steepening.

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