What are the important points of focus for tomorrow's Walsh hearing? Besides the US Iran negotiations this week, the most important macro time should be tomorrow night's Senate hearing on the Federal Reserve's new theme, which will focus on the key points of the Bush hearing. We can also discuss: 1. Interest rate policy, inflation, and dual mission Walsh is seen as neither an extreme hawkish nor a structural dovish, and is expected to support "cautious and moderate interest rate cuts," but will emphasize prioritizing price stability. Senators may ask: What is the assessment of current inflation/employment data? How to avoid reigniting inflation while cutting interest rates? Do you support rule-based frameworks (such as Taylor Rule) to isolate political pressure? The market is most concerned about this. Any hint of "dovish" or "hawkish" will immediately affect interest rate expectations, stock markets, and the US dollar. Investors will listen to whether he implies faster/slower action than Powell. 2. Federal Reserve balance sheet reform Walsh has long advocated for a significant reduction in the Federal Reserve's $6.6 trillion balance sheet. The hearing may ask senators how to synchronously reduce balance sheets in an environment of interest rate cuts without triggering market turbulence or liquidity crises? The significance of this point is different from the "iconic view" of traditional Federal Reserve officials. But the most crucial thing is his policy pace. Previously, here was https://(x.com)/qinbafrank/status/2018129302114689163? We have also talked about s=46&t=k6rimWs Ebo2D2TXolYcM-A. 3. Independence of the Federal Reserve Republican legislators don't ask much about this question, but Democratic legislators are expected to hold on to it: Will Walsh fully follow Trump's instructions (such as sharply cutting interest rates), and if he doesn't cooperate, will he be "prosecuted" or fired? Walsh has publicly criticized Powell's "policy failure" in the past and supported Trump's dissatisfaction with the Federal Reserve, which could become a point of attack. And another noteworthy point is that Republicans such as North Carolina Senator Thom Tillis may still be stuck in the process due to the DOJ's investigation into the Powell/Fed headquarters renovation project - which will affect whether the hearing can proceed smoothly and the voting schedule?