PiCK

Fed Governor Miran: "Inflation impact limited despite higher oil prices…balance-sheet reduction needed"

Source

Minseung Kang

Summary

Stephen Miran, a Fed governor, said that inflation expectations have not been affected despite the recent rise in oil prices.
Miran said the Federal Reserve’s scale of assets and liabilities is excessively large and that a balance-sheet reduction is needed.
The report said markets are focused on the fact that even as price pressures broaden due to higher oil prices, the Fed is simultaneously raising stable inflation expectations and the need to withdraw liquidity.

Forecast Trend Report by Period

U.S. Federal Reserve (Fed) Governor Stephen Miran said that despite the recent rise in oil prices, there has still been no clear impact on inflation expectations.

According to Odaily, a media outlet specializing in virtual assets (cryptocurrencies), on the 30th Miran said, "Higher oil prices have not yet affected inflation expectations."

He added, regarding the size of the Fed’s holdings, that "the Federal Reserve’s current scale of assets and liabilities is excessively large," and remarked that "a balance-sheet reduction is necessary."

Meanwhile, markets are watching closely that even as price pressures intensify amid rising oil prices, calls within the Fed are emerging simultaneously for stable inflation expectations and the need to withdraw liquidity.