The Fed will conclude its balance sheet reduction ahead of schedule this month, with increasing market expectations divergence.

According to Mars Finance news, as reported by Jin10, strategists from JPMorgan and Bank of America expect that the Fed will 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 have adjusted their forecast timing due to the recent rise in borrowing costs in the dollar financing market, and the market generally expects that Fed officials will decide on the direction of the balance sheet in next week's interest rate decision. Although a 25 basis point rate cut is considered highly probable, there are still differences on Wall Street regarding when to end quantitative tightening.