UBS: Walsh is very different from the former chairman of the Federal Reserve or indicates a larger institutional shift

The Zhitong Finance App learned that UBS released a research report saying that Federal Reserve Chairman Walsh is increasingly becoming very different from his predecessor, and that the potential for breakdowns or institutional changes may be greater than the market's original expectations. The bank pointed out that the situation in August and September was not dominated by narratives such as “artificial intelligence deflation to save the market”; instead, Walsh strengthened his anti-inflation rhetoric every time, continuing to distance himself from his previous style. The bank believes that this is no longer just a change in the chairman of the Federal Reserve; it is becoming more and more like a change in the system. The way the central bank is analyzed may also need to be adjusted.

The bank also estimates that since the Congressional Budget Office's last 10-year deficit forecast, the yield curve has moved almost parallel upward; if interest rates rise by 70 to 80 basis points, the federal government's net interest expenses may increase by an additional 2.5 trillion US dollars over the next 10 years.