Fed Faces ‘Trilemma’ of How Big Its Balance Sheet Should Be

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The Federal Reserve is facing a dilemma on the size of its balance sheet, which has stopped shrinking at $6.5 trillion, according to economists at the central bank.

Market Impact

Market impact analysis based on neutral sentiment with 80% confidence.

Sentiment
Neutral
AI Confidence
80%
Time Horizon
Short Term

Article Context

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The Federal Reserve has to grapple with the question of how big its balance sheet should be after it stopped shrinking its $6.5 trillion portfolio, according to economists at the central bank.

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Original article published by Bloomberg on January 15, 2026.
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