The 'Walsh Era' of the Fed begins—has the rate cut expectation dropped to zero? The new Fed Chair Walsh broke tradition by being sworn in at the White House. Facing a 3.8% CPI and the looming threat of stagflation, his core policies are highly disruptive: Betting on AI to curb inflation: Firmly believes that AI-driven productivity leaps can lower business costs, aiming to create room for rate cuts. ✂️ Aggressive reforms and balance sheet reduction: Plans to scrap the 'dot plot' and slash the balance sheet from $6.7 trillion to $3 trillion. Market turmoil: The risks of the new policies triggered a U.S. Treasury sell-off storm, with the 30-year yield breaking 5%, hitting its highest level since 2007. Recent rate cut expectations have dropped to 0%. Under the dual pressure of government demands and a trust crisis, will Walsh make a hawkish statement to assert authority in his June FOMC 'debut'? Check out @JulianLuck1121's brilliant analysis