FOMC members have differing views on what future looks like, says Fed Chair Powell

Group 1 - The meeting had a strong vote in favor of a rate cut, but there were differing views regarding future economic conditions [2][3][4] - Economic growth forecasts for this year and next year have been raised by forecasters, indicating stronger economic activity [3] - The labor market is stable but gradually cooling, with varying forecasts and risk tolerances among committee members [4][5] Group 2 - The balance sheet will be frozen, and as mortgage-backed securities mature, they will be reinvested in Treasury bills to maintain a more balanced duration [5][6] - Non-reserve liabilities, such as currency, will continue to grow organically, leading to a shrinkage in reserves, which need to be managed carefully [6][7] - There is a consensus to move towards a balance sheet that reflects the duration of outstanding Treasury securities, which will take time and be a gradual process [8]