Group 1 - The core issue for the Federal Reserve is determining the optimal size of its balance sheet after halting the reduction of $6.5 trillion [2] - The "trilemma" faced by the Fed involves balancing a smaller size, low interest rate volatility, and minimal market intervention, with only two of these goals achievable at a time [2] - The Fed's balance sheet expanded from approximately $800 billion twenty years ago to $8.9 trillion at its peak in June 2022, primarily due to responses to the 2008 financial crisis and the COVID-19 pandemic [2] Group 2 - There is currently no consensus on the appropriate steady-state size of the balance sheet among economists and policymakers [3] - The strong U.S. dollar has significantly impacted the gold market, making gold more expensive for overseas buyers and suppressing demand [4] - Despite adverse factors, gold prices have shown a resilient performance, remaining above the 5-day moving average, indicating potential for continued strong fluctuations [4]