Where will the new chairman of the Federal Reserve start the first fire?

The Federal Reserve will officially welcome a new helmsman on May 15th - Kevin Wash. The U.S. Senate voted on the 13th to officially confirm Kevin Wash as the next chairman of the Federal Reserve, succeeding Powell. Wash has long been critical of the Fed's past actions. In previous hearings, he listed a number of abuses by the Federal Reserve: including fatal policy errors made in 2021 and 2022, overstepping in politics, and officials prematurely predicting interest rates. The market judges that Wash may take action to rectify these issues once he assumes office. Controlling inflation and promoting employment are the two main missions of the Federal Reserve. To achieve this goal, the Fed mainly uses policy tools in its left and right hands. The left hand is quantitative easing, and the right hand is interest rate control. Hu Jie, a professor at the Shanghai Advanced Institute of Finance of Shanghai Jiao Tong University, explained that quantitative easing directly controls the amount of base currency issued, while interest rates are mainly adjusted through leverage to leverage commercial bank loans. Hu Jie predicts that Wash may gradually reduce the balance sheet, keep it relatively stable after reaching a certain goal, mainly adjust interest rates, and let the market's own rhythm affect the expansion of currency.