# FedPolicy

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#WalshSaysToCautiouslyShrinkBalanceSheet
Federal Reserve leadership talk is shifting toward a cautious approach to shrinking the central bank’s balance sheet — not a rapid unwind.
Nominee Kevin Warsh has been vocal about reducing the Fed’s large portfolio of assets built up over years of QE, arguing that smaller holdings could bring monetary policy back to basics.
However, policymakers and market analysts are stressing that any reduction is likely to be gradual and carefully managed rather than abrupt — partly to avoid renewed stress in money markets and ensure financial stability.
📌 What
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QueenOfTheDayvip:
To The Moon 🌕
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#FedLeadershipImpact – How Much Did Fed Leadership Change Affect Markets?
When President Trump nominated Kevin Warsh, a known monetary hawk, as Fed Chair, markets reacted immediately—but this was more of a policy repricing than a crash.
📉 Short-Term Market Shock
Crypto: Bitcoin fell from ~$78K → $68K (-12–13%). Total crypto market cap dropped 8–10% ($400–500B wiped out).
US Equities: Nasdaq & high-growth tech: -6–9%, S&P 500: -4–6%, AI & speculative stocks: -10–15%.
Why: Markets feared faster balance sheet reduction, less emergency liquidity, and fewer surprise rate cuts. Risk assets sold fir
BTC-0,91%
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CryptoFilervip:
2026 GOGOGO 👊
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🚨 FED RATE CUT OUTLOOK (Polymarket Data): As of today, in the Polymarket contract for "Will the Fed cut rates in September 2025?", the probability of a "25 basis point (bps) rate cut" has surged to 87% — a historical high.
🔥 Comparative Probabilities: The likelihood of a "50 bps rate cut" stands at 9%, "no change" at 4%, and the "rate hike" option is nearly zero.
📊 Trading Volume Breakdown: Total trading volume for this forecast event has exceeded $76M. The "50 bps rate cut" contract leads with over $16.94M in volume, followed by the "25 bps rate cut" contract at $12.04M. Since early August
IN4,1%
ZERO0,93%
MORE-12,14%
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