The Federal Reserve will end its balance sheet reduction ahead of schedule this month, and market expectations are increasingly divergent

ChainCatcher news, according to Jinshi reports, strategists from JPMorgan and Bank of America expect the Federal Reserve to stop reducing its approximately $6.6 trillion balance sheet this month, prematurely ending the process aimed at withdrawing liquidity from the financial markets. The two banks adjusted their forecast timing due to the recent rise in borrowing costs in the dollar financing market, and the market generally expects Federal Reserve officials to decide on the balance sheet direction at next week's interest rate resolution. Although a 25 basis point rate cut is seen as a high probability event, there are still differences on Wall Street regarding when to end quantitative tightening.