Wall Street expects Fed to end tapering this year

The end of Fed tapering is in sight, but the actual closing date depends on the pace of rate cuts and financing market pressures. Policymakers have hinted that they will complete their U.S. debt reduction by the end of the year, and many on Wall Street believe that quantitative tightening (QT) is unlikely to end abruptly. But recent weak economic data and risks of liquidity stress have clouded the outlook with uncertainty. "If the Fed intends to stimulate the economy, then tapering could be halted," said Bank of America strategists Mark Cabana and Katie Craig. "If the Fed aims to normalise monetary policy, then tapering could continue."