CICC: The choice of the Federal Reserve Chairman is unlikely to shake the expansion of the balance sheet

According to Jin Shi's report, the research report from China International Capital Corporation points out that it is difficult to shake the normalization of balance sheet expansion regardless of who is chosen as the Federal Reserve Chairman. Although the Federal Reserve began expanding its balance sheet last December, and there has been a marginal improvement in liquidity, narrow liquidity remains well below the lower limit of the "ample level," and the dollar liquidity indicators still show a relatively tight state since the pandemic.

Under the pressures of debt and financial market stability, the trend of liquidity expansion is likely to be a high-probability event, and there is a possibility of a sustained global asset bull market.