Group 1 - The Federal Reserve's balance sheet has faced criticism, necessitating clear and transparent communication regarding changes in bond holdings and policy intentions [1] - The balance sheet serves multiple functions, including regulating bank reserves and supporting monetary policy implementation, and should be adjusted dynamically based on financial system needs [1] - The Fed is nearing the end of a three-year balance sheet reduction plan and is discussing the potential need to restart bond purchases to ensure alignment between bank reserves and system demand [1] Group 2 - There is cautious optimism regarding the U.S. economic outlook, with a significant reduction in uncertainty, although concerns about a slowdown in the labor market are increasing [2] - Inflation is decreasing but remains persistent, particularly in the services sector, and the Fed aims to reduce inflation to 2% while maintaining the credibility of this target [2] - The impact of artificial intelligence (AI) on employment is not yet clear, with no significant reports of job losses attributed to AI, and it is believed that AI investments will not create a bubble similar to the tulip mania [2] - The balance of policy risks is expected to be heavily tilted towards inflation until mid-2025, after which it may begin to shift towards a more balanced state [2]