Fed Ended Balance-Sheet Reduction on December 1; Pivot Seen Toward $35B Monthly Treasury Bill Purchases From January 2026

The Federal Reserve ended balance-sheet reduction on December 1. Foreign media analysis said the FOMC's key signal may focus on balance-sheet strategy rather than a 25 basis-point rate cut. Evercore ISI expects a transition to a Reserve Management Purchase plan. It could start in January 2026 and buy about $35B of Treasury bills per month, lifting annual balance-sheet growth above $400B.