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Wall Street Sees Fed Bond-Runoff End Well Before Powell Timeline
The Federal Reserve is penciling in at least another couple of years of running down its bond portfolio of around $8 trillion. But observers are increasingly predicting it will end a whole lot sooner than that. Even before the Fed’s balance-sheet runoff plan, known as quantitative tightening, gets up to full speed in September -- at a monthly clip of up to $95 billion, or over $1.1 trillion a year -- two camps of economists and strategists have emerged predicting an early end, at some point in 2023. One group says the central bank will have to abandon QT as early as next year, when it turns to cutting rates to ... (full story)