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Stock impact report

Wall Street Uncertain Over When Fed's Balance-Sheet Unwind Will End [Yahoo! Finance Canada]

Barclays PLC (BCS) 
Most Read from Bloomberg Officials, who left interest rates unchanged on Wednesday, said that starting April 1 they'll lower the cap on the amount of Treasuries allowed to mature without being reinvested to $5 billion from $25 billion. The Fed will leave the cap on mortgage-backed securities unchanged at $35 billion. The central bank has been winding down its holdings since June 2022 — a process known as quantitative tightening, or QT — by gradually increasing the amount of Treasuries and mortgage bonds it allows to run off without being reinvested. Barclays Plc now sees that program ending in June 2026 instead of September of this year, while Bank of America Corp. pushed out its expectation for the end of the runoff to December of this year, from September previously. There is not a clear consensus on Wall Street and some strategists, like the ones at Deutsche Bank, say that the change this week is unlikely to change the timing of the end of quantitative tightening. The di Show less Read more
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