PANews reported on October 23rd that strategists at JPMorgan Chase and Bank of America predict the Federal Reserve will stop shrinking its approximately $6.6 trillion balance sheet this month, bringing the process of draining liquidity from financial markets to an early end. Both banks have brought forward their forecasts for the end of the Fed's quantitative tightening program due to recent increases in borrowing costs in the US dollar funding market. Previously, they expected the reduction, which began in June 2022, to continue until December or early next year. The market generally expects Fed officials to decide on the direction of the balance sheet at next week's interest rate decision. While a 25 basis point rate cut is seen as highly likely, Wall Street remains divided on when policymakers will end quantitative tightening. TD Securities and Mizuho Securities, among others, have brought forward their forecasts to October, while analysts at Barclays and Goldman Sachs believe the end will be later.PANews reported on October 23rd that strategists at JPMorgan Chase and Bank of America predict the Federal Reserve will stop shrinking its approximately $6.6 trillion balance sheet this month, bringing the process of draining liquidity from financial markets to an early end. Both banks have brought forward their forecasts for the end of the Fed's quantitative tightening program due to recent increases in borrowing costs in the US dollar funding market. Previously, they expected the reduction, which began in June 2022, to continue until December or early next year. The market generally expects Fed officials to decide on the direction of the balance sheet at next week's interest rate decision. While a 25 basis point rate cut is seen as highly likely, Wall Street remains divided on when policymakers will end quantitative tightening. TD Securities and Mizuho Securities, among others, have brought forward their forecasts to October, while analysts at Barclays and Goldman Sachs believe the end will be later.