According to PANews, JPMorgan strategists, including Teresa Ho, anticipate that the Federal Reserve will conclude its quantitative tightening (QT) by the first quarter of 2025. This adjustment comes as liquidity conditions have normalized following the end of October. Previously, it was expected that the QT process would be completed by the end of 2024.
The strategists noted that both the supply of U.S. Treasury bills and repurchase agreements have increased. Additionally, money market funds are seeking to extend into longer maturities as expectations for monetary easing diminish. These factors have led to a withdrawal of more funds from the Federal Reserve's overnight reverse repurchase agreement facility. This shift in financial dynamics reflects the evolving landscape of the U.S. monetary policy and its impact on liquidity and market operations.
