Bank of America predicts that the Federal Reserve will increase its assets by $45 billion per month, expanding its balance sheet to $6.5 trillion.

According to ChainCatcher, while the market is generally focused on the Federal Reserve's interest rate decision, traders have already begun to pay attention to whether the Fed will expand its $6.5 trillion balance sheet. Michael Kelly, Global Head of Multi-Asset at PineBridge Investments, stated that the market is watching whether the Fed will keep its balance sheet unchanged or begin to expand it.

Strategists at Bank of America predict that the Fed will announce this week that starting from January 2026, it will expand its balance sheet by $45 billion per month. Of this, at least $20 billion per month will be used to achieve natural growth of the balance sheet, and $25 billion per month will be used to reverse excessive depletion of reserves. This action will last at least until the first half of 2026. Roger Hallam, Global Head of Rates at Vanguard Fixed Income, said that in the long term, due to the increased demand for reserves in the economy, the Fed will naturally begin to purchase short-term Treasuries next year. Cathie Wood previously mentioned the easing of the Fed's liquidity conditions and reiterated Ark Invest's long-term forecast that the future price of bitcoin will reach $1.5 million.