๐จ BREAKING: The Fedโs Balance Sheet Pivot is Official
โThe era of "shrinking" is over. After years of Quantitative Tightening (QT), the Federal Reserve has officially hit the "Reverse" button, and the numbers are coming in hot.
โThe Stats You Need to Know:
โWeekly Surge: The Fedโs balance sheet just jumped +$24.4 billion in the week ending December 24thโthe single largest weekly spike since the 2023 banking crisis.
โA New Trend: This marks the 3rd consecutive week of expansion, totaling a +$45.5 billion increase in less than a month.
โThe Current Floor: Total assets now sit at $6.58 trillion, the highest level since October.
โWhy Is This Happening Now?
โThe "plumbing" of the financial system is thirsty for liquidity. To prevent volatility in the overnight lending markets and maintain "ample reserves," the Fed is moving back into an expansionary phase.
โWhatโs Next for 2026? ๐ญ
โThe Fed isn't just dipping its toes back in; it's diving in. Projections for 2026 show:
โMonthly Buys: Projected purchases of $35โ$55 billion in Treasury bills every single month.
โThe $7 Trillion Milestone: Total purchases are expected to hit ~$550 billion this year, likely pushing the balance sheet back above the $7.0 trillion mark by year-end.
The "Great Shrink" has officially bottomed out. As we enter 2026, the Federal Reserve is once again a net buyer, and the liquidity taps are opening back up.
