21 March | Dollar

Wall Street strategists have different forecasts for when Fed's quantitative tightening ends

Wall Street strategists have different forecasts for when Fed's quantitative tightening ends

The US Federal Reserve's (Fed) decision to lower the pace of its balance sheet unwind has led some Wall Street strategists to revise their forecasts for the end of the quantitative tightening program.

The US regulator has been reducing its holdings since June 2022 by gradually raising the amount of Treasuries and mortgage bonds which can run off without re-investment.

Barclays Plc expects the process to continue until June 2026. At the same time, Bank of America Corp predicts the quantitative tightening program to end in December 2025. Earlier, both organizations forecasted the Fed's balance sheet unwind to go on until September this year.

Meanwhile, according to Deutsche Bank, a change in the pace of quantitative tightening is unlikely to affect its timing, with the program ending in the first quarter of 2026.

Chairman of the US central bank Jerome Powell says that there are some signs of increased tightness in the money markets. It is a key factor in determining the timing and path of balance sheet reduction, Bloomberg adds.

Period: 10.07.2025 Expectation: 1200 pips
Selling USDJPY during rebound with 142.430 target
Yesterday at 10:33 AM 36
Period: 11.07.2025 Expectation: 220 pips
Heatwaves across Europe and US support gas price recovery from recent lows
Yesterday at 09:27 AM 61
Period: 08.07.2025 Expectation: 1500 pips
EURUSD rally faces potential correction toward 1.165
02 July 2025 64
Period: 09.07.2025 Expectation: 1400 pips
USDCAD declines amid US dollar weakness and improving Canadian trade prospects
02 July 2025 43
Period: 08.07.2025 Expectation: 3000 pips
Buying Bitcoin during consolidation before July growth wave with 110,000 target
01 July 2025 71
Period: 07.07.2025 Expectation: 2000 pips
Renewed tensions between Musk and Trump weigh on Tesla shares
01 July 2025 59
Go to forecasts