Federal Reserve to Expand Balance Sheet by $45 Billion Monthly Starting 2026

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In accordance with Bpaynews, the Federal Reserve is expected to expand its balance sheet by $45 billion per month starting in January 2026, according to Bank of America. The increase includes $20 billion for natural growth and $25 billion to reverse excess reserve consumption. The expansion aims to support liquidity conditions and economic growth, with implications for interest rates and asset prices. Analysts are monitoring how this policy shift may affect financial markets and investment strategies in the coming years.

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