[Bank of America: Walsh's Treasury-Fed 'New Accord' Proposal Unlikely to Impact Bond Market] Jin10 News, February 13 – Bank of America strategists stated that Federal Reserve Chair nominee Walsh's call for a new accord with the Treasury is unlikely to have a substantial impact on bond prices, as the two institutions already work closely together. Walsh had proposed revisiting the 1951 agreement between the Treasury and the Federal Reserve, which significantly limited the Fed's influence in the bond market. However, after a decade of consecutive asset purchase programs, the Fed's balance sheet has already expanded to $6.6 trillion. Bank of America strategists, including Mark Cabana and Katie Craig, noted that this concept remains vaguely defined and largely reflects practices already in place. They stated that the most significant market impact would occur if the Treasury reduces the issuance of long-term bonds or if the Fed adopts a policy of interest rate pegging (which is less likely). 'Other steps in the accord are unlikely to have much impact. We believe the new "accord" will have limited influence on the rates market.'