Fed will start ‘quantitative tightening’ this September – JP Morgan
|Following the hawkish FOMC Minutes, the US banks rolled out their analysis of when the US Federal Reserve (Fed) can start the balance-sheet normalization.
“We think the Fed will start ‘quantitative tightening’ this September by allowing maturing assets to run off its balance sheet,” said JP Morgan. The bank adds, “We expect the FOMC will phase in a $100bn-per-month cap on runoff... double the maximum pace its balance sheet was reduced during 2017 to 2019.”
On the other hand, Goldman Sachs expects the balance sheet squeeze could begin relatively quickly following the interest rate lift.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.