Barclays predicts the Federal Reserve will expand its balance sheet ahead of schedule, starting to purchase Treasury bills in February next year.

after several key Federal Reserve officials hinted at expanding the balance sheet, Barclays strategists expect the Federal Reserve to start purchasing Treasury bills in February next year. Barclays strategist Samuel Earl wrote: "Given the market's focus on the repo rate, the Federal Reserve is in risk management mode, and an early start to asset purchases seems the most likely outcome."