The vast majority of analysts seem convinced that the Federal Reserve will expand its balance sheet starting in January. Senior Analyst at Danske Bank, S. Roed-Frederiksen, explains that the jobless rate is still out of the Fed’s comfort zone and the inflation, measured by the PCE, continues to navigate well below the target. “Hence, we expect the Fed to provide an additional monetary boost to the economy next year by replacing the Twist programme with unsterilized treasury purchases”. Regarding the numerical thresholds many times exposed, the analyst believes “It is too early for the Fed to announce a new framework of numerical thresholds for inflation and unemployment. More time is needed to reach consensus”.