[Deutsche Bank: If the Fed opts for quantitative tightening instead of rate hikes, the dollar may weaken] Jin10 News, July 16 – Deutsche Bank analyst George Saravelos pointed out in a report that if the Federal Reserve shifts its policy focus from raising interest rates to reducing its balance sheet (i.e., quantitative tightening) to tighten monetary policy, the dollar may weaken as a result. He noted that Japan's experience is worth referencing. Despite the Bank of Japan's slow pace of rate hikes, it has withdrawn liquidity at a record pace through quantitative tightening, yet the yen remains at historic lows. Furthermore, tightening the balance sheet could potentially create policy conflicts with the Trump administration, as the Trump administration has explicitly stated its desire to maintain long-term Treasury yields at low levels. He also mentioned that the independence of the Bank of Japan continues to be a concern for the market. Japanese Finance Minister Katsuyuki Katayama has even discussed utilizing domestic savings to support Japan's bond market.