The Federal Reserve's Reserve Policy Will Continue to Expand Regardless of the President's Choice

SellLowExpert · 2026-02-13T02:08:21+00:00

The choice of the next Federal Reserve president will not significantly affect the expansion policy of the asset reserve due to structural economic constraints that influence market liquidity. The injection of resources is likely to continue, supporting global assets.

SellLowExpert

2026-02-13 02:08:21

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According to analysis by China International Capital Corporation (CICC), the selection of the next Federal Reserve chair will not have a decisive influence on decisions regarding the expansion of asset reserves. Although the Federal Reserve began asset purchase programs at the end of 2025, the impact on overall market liquidity remained limited, still below levels considered to be broad resource availability.

Balance Sheet Expansion and Pressure on Liquidity Reserves

Data released by ChainCatcher indicate that the dollar indicator continues to signal tight conditions since the pandemic period. This persistence reflects a structural reality of the market: the available currency reserve does not fully meet global liquidity needs. The scope for improvement was minimal given the scale of existing demand.

Why the Choice of President Does Not Change the Reserve Policy Direction

The reason for this relative independence is rooted in underlying economic dynamics. With increasing pressure from public debt and the need to maintain financial market stability, the trend of expanding monetary reserves has become virtually inevitable. Any president taking office will need to deal with these structural constraints, leaving little room for significant policy deviations.

Outlook for the Asset Market Under Greater Liquidity

The expected scenario is continued liquidity injections into the markets. Maintaining a broad reserve of resources is likely to sustain the bullish behavior observed in global assets, regardless of leadership changes within the institution. Therefore, the market should prepare for a more predictable trajectory regarding expansionary monetary policies in the coming periods.

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