Morgan Stanley expects the Fed to start slowing balance sheet reduction in June

Janak9955

Golden Finance reports that economists at Morgan Stanley have stated that the Federal Reserve is expected to announce its plan to slow down the balance sheet reduction in May and commence the process in June. Analysts, including Seth Carpenter from the bank, anticipate detailed discussions on the balance sheet reduction during the next three FOMC meetings, with an announcement in May regarding the scale and extent of the reduction, followed by the initiation of the process in June. Morgan Stanley had previously predicted the Fed to start slowing down the balance sheet reduction pace from September of the previous year. The bank still maintains its expectation that the balance sheet reduction will conclude by February 2025. It is anticipated that the Fed's overnight reverse repo usage will decrease to $250 billion by May or June.

Kapil334

This is also uncertain, right?

Jatin255

The pace has indeed slowed down a bit.

Yamini003

Now they are also starting to slow down their pace.