Former Fed Trader Predicts Balance Sheet Expansion to Maintain Control Over Interest Rates

Joseph Wang, former senior trader at the New York Federal Reserve’s open market division and now known online as ‘The Fed Guy,’ predicts a renewed balance sheet expansion by year-end. He believes this move will be driven by liquidity management, not market interventions or Treasury yield manipulation. 💰Wang estimates the Fed may need to inject $300-$500 billion annually into the system to manage short-term interest rates effectively.