JPMorgan: Fed expected to end tapering in Q1 2025, not by end-2024

Strategists such as Teresa Ho at JPMorgan expect the Fed to end quantitative tightening (QT, or balance sheet reduction) in Q1 2025, after previously expecting to complete the process by the end of 2024, given that liquidity conditions have returned to normal after the end of October. A double increase in the supply of U.S. Treasury bills and repos, and money market funds seeking to expand to longer maturities amid weakening expectations of easing, both siphoned off more funds from the Fed's overnight reverse repo tool.