The Federal Reserve is expected to end quantitative tightening this week as signs of market stress emerge.
ChainCatcher news, according to Golden Ten Data, the Federal Reserve is expected to end its three-year-long quantitative tightening phase this week, easing pressure on banks. Some bank lending institutions tapped into the Federal Reserve's backup funding facility earlier this month, with its scale reaching levels seen during the pandemic. Since launching the quantitative tightening program in June 2022, the Federal Reserve has allowed over $2 trillion of U.S. Treasury bonds and mortgage-backed securities to roll off its balance sheet. Krishna Guha, Vice Chairman of Evercore ISI, stated that the market has basically reached a consensus that the Federal Reserve will end quantitative tightening this month. Former Federal Reserve Vice Chairman Clarida pointed out that even without a formal resolution, there will be strong signals indicating that the Federal Reserve will terminate quantitative tightening in December.
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