Sou Hu Cai Jing·2025-10-23 15:37Core Viewpoint - JPMorgan and Bank of America strategists predict that the Federal Reserve will halt the reduction of its approximately $6.6 trillion balance sheet this month, ending the process aimed at withdrawing liquidity from financial markets earlier than expected [1] Summary by Categories Federal Reserve Actions - The reduction of the balance sheet, initiated in June 2022, was initially expected to continue until December or early next year, but recent increases in borrowing costs in the dollar financing market have led to an earlier prediction for the end of quantitative tightening [1] Market Expectations - There is a general expectation that Federal Reserve officials will decide on the direction of the balance sheet in the upcoming interest rate decision next week [1] - While a 25 basis point rate cut is considered highly likely, there remains a divergence on when the decision-makers will terminate quantitative tightening [1] Analyst Predictions - Institutions such as TD Securities and Mizuho Securities have moved their predictions for the end of quantitative tightening to October, while analysts from Barclays and Goldman Sachs believe the end will occur later [1]