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Wall Street Sees Risks of Later Start Date for Fed’s QT Tapering
As Federal Reserve officials prepare for an in-depth conversation about its balance sheet at next week’s meeting, Wall Street strategists can only agree that all of the plans being discussed by the central bank carry some growing risks. While a handful expect the Fed to announce or even begin slowing the unwind of its balance sheet — a process known as quantitative tightening, or QT — as early as May, others don’t see a tapering starting until the second half of the year. The divergence comes from the myriad variables that could affect the timing of slowing QT, from the drainage of the reverse repurchase ... (full story)