Federal Reserve Chair Selection Unlikely to Impact Balance Sheet Expansion

A recent report from China International Capital Corporation (CICC) suggests that the choice of Federal Reserve Chair will not significantly affect the normalization of balance sheet expansion. According to ChainCatcher, despite the Federal Reserve initiating balance sheet expansion in December last year, liquidity has marginally improved but remains below the lower limit of 'ample levels.' The dollar liquidity indicator continues to show a tight status since the pandemic. Under the pressure of debt and financial market stability, the trend of liquidity expansion is likely to continue, potentially sustaining the global asset bull market.