On November 9, BlockBeats news reported that strategists like JPMorgan’s Teresa Ho believe the Federal Reserve will end quantitative tightening (QT), or balance sheet reduction, in the first quarter of 2025. This is due to liquidity conditions returning to normal after October. The process is expected to be completed by the end of 2024.
Both the supply of U.S. Treasury bills and repos have increased, and money market funds have sought longer-maturity investments as easing expectations weaken. This has led to more funds being drawn from the Fed’s overnight reverse repurchase facility.
