Morgan Stanley: The Fed is now expected to slow down the pace of balance sheet reduction starting in June

According to BlockBeats news, on January 21, Morgan Stanley economists said that the Federal Reserve will announce a plan to slow down its balance sheet reduction in May and start it in June. The bank's Seth Carpenter and others wrote that the Fed is expected to discuss the issue of balance sheet reduction in "details" at the next three FOMC meetings, announce in May the scale and extent of the balance sheet reduction action, and start this process in June. process. Morgan Stanley had previously predicted that the Fed would begin to slow down the pace of balance sheet reduction from September last year. The bank now maintains its forecast for the balance sheet reduction to end in February 2025. Usage of the Fed's overnight reverse repurchase facility is expected to drop to $250 billion by May or June. (Golden Ten)