Balance Sheet Dominance | Joseph Wang | 27 Oct 2025

**The Core Thesis** > Joseph Wang argues that the Federal Reserve is losing its independence over its balance sheet policy due to the massive U.S. fiscal deficit. This "**Balance Sheet Dominance**" means the Fed’s balance sheet size is now dictated by the need to fund the government and keep the repo market stable, rather than by purely discretionary monetary policy goals. **1. The Demand for Repo Financing** -…