JP Morgan: Fed expected to slow balance sheet reduction in April and exit in November
Morgan Stanley strategists believe that the Fed's quantitative tightening will end at the end of November, while the overnight reverse repurchase tool usage by the Fed will remain at a level sufficient to maintain stable operation of the currency market. Strategists led by Jay Barry expect the Fed to propose a timetable outline at the January meeting and convey it through the minutes to be released in mid-February. They wrote that an agreement may be reached at the March meeting and implemented in April.
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