Cointelegraph analyst and writer Marcel Pechman analyzed the impact of the Federal Reserve's balance sheet and how it expanded its assets by $5 trillion between December 2019 and April 2022. Pechman pointed out that the expansion period coincided with a 38% drop in the S&P 500 index. Additionally, as the stock market index hit a historic high of 4800 points, the Federal Reserve's balance sheet surpassed the $8.9 trillion mark. Pechman stated that the problem lies in the massive deficit of the US Treasury, as government spending exceeds income and taxes. Therefore, it needs to start rolling over some of its debt instead of letting it mature, making it likely that it will no longer be able to continue reducing its balance sheet, which has been a huge factor in reducing inflation. Pechman believes that once the Federal Reserve is forced to expand its balance sheet again, inflation will ultimately be most affected. He advises those holding scarce assets such as Apple stocks, land, gold, and Bitcoin to hold on tight and not be deceived by temporary inflation drops.