JPMorgan Chase: The Federal Reserve is expected to end tapering in Q1 2025 rather than before the end of 2024

On November 9th, strategists including Teresa Ho from JPMorgan Chase predicted that given the liquidity situation has returned to normal after the end of October, the Federal Reserve will end quantitative tightening (QT, i.e., reducing balance sheet) in the first quarter of 2025. It was previously expected to complete this process before the end of 2024. Both U.S. Treasury bonds and repurchase supplies have increased, and money market funds are seeking to expand towards longer terms under weakened easing expectations, both withdrawing more funds from the Federal Reserve's overnight reverse repo tool.