Bank of America economists have downplayed the potential market impact of a speculated "coordinated agreement" between the Federal Reserve and the U.S. Treasury. The bank suggests that any such agreement is "undefined" and likely already factored into market prices. They assert that unless the agreement exceeds current market discussions, it is unlikely to cause significant price volatility. The anticipated agreement would focus on the Fed's balance sheet reduction and U.S. Treasury issuance. Bank of America notes that a more substantial market impact could occur if monetary policy changes, which they deem highly unlikely, or if the Treasury limits long-term debt issuance, which they consider possible.