The Fed is likely to return to quantitative easing, but with a significant difference.

According to recent analysis, this could start as early as Q1 2026. However, this new round of QE will look very different from past programs:

Pace will be slow: The Fed is expected to expand its balance sheet by only $20 billion per month, a fraction of the $800 billion per month injected in 2020.

Asset focus has changed: Instead of long-term treasury bonds, the Fed will primarily buy treasury bills. Long-term bond purchases drive stronger market impact, while short-term bills create a much slower and weaker form of easing.

As a result, this QE is unlikely to provide a major boost to risk assets like equities or crypto, given its smaller scale and more cautious structure compared to previous cycles.