Bank of America: The forecast for the Federal Reserve to end balance sheet reduction has been postponed to the end of March 2025

ChainCatcher message, Bank of America strategists Mark Cabana and Katie Craig stated in a report that the bank now expects the Federal Reserve to end its balance sheet reduction by the end of March 2025, compared to the previous forecast of December 2024, due to the lack of discussion among policymakers regarding its policy. The September FOMC meeting indicated that the Federal Reserve believes changes in policy rates and the balance sheet are independent of each other.