Eseandre Mordi
⬤ The Fed's balance sheet is expected to keep growing at roughly the same pace as total bank assets and national GDP. Lyn Alden's analysis suggests this expansion trend will continue as part of the central bank's monetary approach.
⬤ Most of this growth comes from buying government bonds and similar assets, which directly injects more cash into the financial markets.
⬤ As the balance sheet gets bigger over time, it naturally pushes more capital into the broader economy and trading markets.
⬤ Central bank asset purchases remain a key tool for controlling how much liquidity flows through the financial system.
Eseandre Mordi
