Golden Finance reports that the Federal Reserve (FED) FOMC statement indicates that it will continue to reduce its holdings of government bonds and MBS at the current pace.

Jin10 data reported on May 8: The Federal Reserve (FED) FOMC statement: Will continue to reduce the holdings of Treasury bonds and MBS at the current pace.

1. Interest rate expectations: The Federal Reserve is expected to keep interest rates unchanged at 4.25%-4.50% at this meeting, the third consecutive meeting. At present, the federal funds rate futures show that the market expects a 28.4% probability of a rate cut in June, pricing in a cumulative rate cut of 78bp for the whole of this year. 2. Voting ratio: At the last meeting, the members unanimously agreed to keep the interest rate unchanged, but Governor Waller opposed the balance sheet reduction adjustment. The meeting is expected to remain unanimous, but Waller may vote against it if the pace of balance sheet reduction changes. 3. Pace of balance sheet reduction: Pay attention to whether there will be any adjustments to the pace of balance sheet reduction. It is expected to maintain the pace of balance sheet reduction in March, that is, to maintain the upper limit of US debt reduction at $5 billion per month, and the upper limit of MBS reduction at $35 billion per month. 4. Wording of the statement: It is necessary to pay attention to the relevant comments on the economic outlook in the statement, and whether the wording of "increased uncertainty about the economic outlook" in March will be adjusted to reflect the increased uncertainty

On May 5, Jin10 reported that on May 4 local time, the Maldivian government and MBS Global Investments, headquartered in Dubai, announced the establishment of the "Maldives International Financial Center" (MIFC). The total investment for the project is expected to reach 8.8 billion USD, located in the capital of Maldives, Malé. The project is expected to be completed by 2030, aiming to significantly boost the GDP of Maldives within four years, with the revenue expected to exceed 1 billion USD in the fifth year.

The Fed needs to be open to actively selling collateralized mortgage obligations to complete its ongoing balance sheet reduction efforts. Cleveland Fed President Mester pointed out that although selling mortgage-backed securities is not "imminent," the Fed's goal is to restore holding only U.S. Treasuries, which may require selling MBS. Mester believes that at some point, selling MBS is feasible.

Gate.io News bot message, the Financial Times reported that the Maldivian government has reached a joint venture agreement with Dubai MBS Global Investments to jointly build a Blockchain and digital asset financial center in Male. The total investment for the project amounts to 8.8 billion USD. MBS Global Investments is affiliated with the family office of Qatari billionaire Sheikh Nayef bin Eid Al Thani and has currently secured initial funding commitments of $4 to $5 billion. The Maldivian government is driving the national economy to transform from traditional tourism and fisheries through this project.

Golden Data November 8th news, the total size of the Federal Reserve's balance sheet fell below 7 trillion US dollars, for the first time since August 2020, indicating that the Fed's balance sheet reduction has reached about 2 trillion US dollars. The Fed previously stated in its latest statement that it will maintain the size of the balance sheet, namely reducing 250 billion US dollars of US Treasuries and 350 billion US dollars of MBS per month.

BlockBeats News, on November 8th, the Federal Reserve FOMC statement: maintaining the scale of balance sheet reduction unchanged. (Reducing $25 billion of U.S. Treasury bonds and $35 billion of MBS every month) The labor market situation "generally eased". The members unanimously agreed on this Interest Rate decision. (The last meeting was

The article states that the Federal Reserve's balance sheet is a key tool to support the monetary policy goals and is used to support financial stability in rare cases. The FOMC has previously used purchases of US Treasuries and MBS to ease overall financial conditions. An article from the New York Fed indicates that the FOMC also instructed the Fed to reduce the size of the balance sheet to the level required to implement monetary policy.