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According to Jinse Finance, Federal Reserve Governor Waller stated that the balance sheet should continue to be reduced, including adjusting the asset structure to increase the proportion of short-term assets, but there may be no need for excessive cuts. "I believe it is very likely that we will continue, for some time, to allow securities that mature or are prepaid to naturally roll off the balance sheet, thereby reducing reserve balances," Waller said in a speech prepared for a Dallas Fed event on Thursday. In his speech, which focused on the balance sheet, Waller advocated for balance sheet reduction, but to a lesser extent than some Fed watchers and economists have suggested. He noted that current bank reserves remain "ample" (above the Fed's defined "sufficient" standard), and the ideal level should be maintained at around $2.7 trillion. Including the Fed's holdings of currency in circulation and the Treasury General Account balance, the total balance sheet would reach $5.8 trillion, compared to the current $6.7 trillion.

According to a report by Jinse Finance, San Francisco Federal Reserve President Mary Daly stated that she still believes there could be two interest rate cuts this year, and noted that the impact of tariffs on prices is increasingly likely to be milder than previously expected. Daly revealed that some companies are negotiating to share the costs of tariffs, thereby reducing the proportion passed on to end consumers. She said that the U.S. economy is in good condition, with economic growth and consumer spending slowing down, but not weakening. Inflation is moving toward the Federal Reserve’s 2% target. “I think there may be two rate cuts, but everyone’s expectations are uncertain, and we are considering implementing rate cuts in the fall,” Daly said.