BRICS De-Dollarization Accelerates as Fed Signals Return to Money Printing
The Federal Reserve's pivot toward balance sheet expansion in early 2026 coincides with BRICS nations intensifying efforts to reduce dollar dependence. This convergence marks a critical inflection point for global markets.
New York Fed President John Williams confirmed the technical necessity of resumed money printing, though the timing remains fluid. The Fed's balance sheet has contracted from $9 trillion to $6.6 trillion since 2022 through quantitative tightening—a process now reversing as reserves approach operational thresholds.
Market volatility looms as these monetary crosscurrents collide with BRICS' de-dollarization push. The Fed's December 2025 cessation of QT formally ends a three-year liquidity drain, setting the stage for renewed dollar debasement risks.
