[Institution: Walsh's downsizing plan requires long-term preparation and the pace of progress is gradual] According to a report by Golden Finance and a research report by CITIC Securities, on April 21st, the US Senate held a hearing on Walsh's nomination for Federal Reserve Chairman. Walsh's statement shows that he is facing a high level of difficulty in balancing. On the one hand, he needs to "please" Trump to some extent, thus recognizing Trump's voice on interest rates; On the other hand, he needs to gain the trust of the market and the Federal Reserve internally, so he emphasizes the mission of price stability and the independence of the Federal Reserve. Although Walsh's performance in the face of questions from Democratic lawmakers was not satisfactory, it had little impact on whether Walsh could take over Powell. Whether Walsh can successfully pass the Senate Banking Committee vote depends on whether he can gain the support of Republican Senator Tillis. We believe that Trump will most likely TACO and withdraw the investigation into Powell to help Walsh pass the Senate vote. During the Q&A session, Walsh emphasized that he would not become Trump's "puppet" and that the market was biased towards hawkish trading. Walsh's ideas on reforming the Federal Reserve are more worthy of market attention, especially his proposal that the Fed needs a new inflation framework and his criticism of the Fed's current forward guidance approach. Walsh emphasized that the Federal Reserve should reduce its balance sheet and use interest rates as the primary tool. However, we still believe that Walsh's schedule reduction plan requires long-term preparation and the pace of progress is gradual. (Zhitong Finance)