:The Fed is highly likely to restart balance sheet expansion before the end of the year.

Odaily Planet Daily reported that Joseph Wang, who previously worked as a trader in the New York Fed's open market department and is now active on YouTube under the name The Fed Guy, believes that after three years of balance sheet reduction, the Fed is highly likely to restart balance sheet expansion before the end of the year. He does not agree with the viewpoint of some investors that this move is to prevent a collapse in risk asset prices, maintain low treasury yields, or even to avoid a liquidity crisis. He believes that if the Fed does not inject more liquidity into the system by purchasing securities, it will lose control over short-term interest rates, meaning it will no longer be able to set monetary policy. In Joseph Wang's view, strong repo demand and the continuously expanding TGA account will force the Fed to expand its balance sheet by $300 billion to $500 billion each year.