U.S. Federal Reserve Chair: Any change to the bank's balance sheet will be announced in advance

Al-Eqtisadiah from Riyadh

Tuesday, July 14, 2026 18:41 | 1 minute read

U.S. Federal Reserve Chair Kevin Warsh testifies before the House Financial Services Committee on Capitol Hill in Washington, D.C., U.S., July 14, 2026. REUTERS/Jonathan Ernst

Federal Reserve Chair Kevin Warsh said during a hearing before the House Financial Services Committee that any change to the Fed's balance sheet will be announced in advance.

Warsh stressed his efforts to keep the committee's decisions away from any role of politics or political considerations, noting that markets will receive adequate advance notice of any changes to the bank's balance sheet, so that they are presented, explained, and discussed.

While he said his views on the Fed's massive balance sheet are "well known," he expressed unwillingness to preempt decisions to be made by the "new Federal Reserve Balance Sheet Task Force."

He said the Fed's balance sheet is part of monetary policy, and he wants the Fed to avoid intervening in fiscal policy.

Read also: Traders price in 50% probability of U.S. rate hike this month

Traders see the likelihood of a U.S. interest rate hike later this month as evenly balanced, as a renewed rise in oil prices and hawkish comments from Fed officials point to a swift move to curb inflation.

Money market pricing on Monday indicated that traders increased their bets on a quarter-percentage-point rate hike in July, following a series of new U.S. strikes on Iran.

Pricing reflected a 50% probability of a rate hike, up from 40% earlier in the session, after Fed Governor Christopher Waller said policymakers may need to raise rates if core inflation continues to indicate broad price pressures.

Read also: Slowing of inflation in America more than expected in June

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