The Federal Reserve is expected to end quantitative tightening this week, with signs of pressure emerging in the market

ChainCatcher news, according to Jinshi reports, the Federal Reserve is expected to end its three-year quantitative tightening phase this week, easing pressure on banks. Some bank lending institutions activated the Federal Reserve's backup financing mechanism earlier this month, reaching levels seen during the pandemic. Since the launch of the quantitative tightening program in June 2022, the Federal Reserve has allowed over $2 trillion of U.S. Treasury and mortgage-backed securities to roll off its balance sheet. Evercore ISI Vice President Krishna Guha stated that the market has largely reached a consensus that the Federal Reserve will end quantitative tightening this month. Former Federal Reserve Vice Chairman Clarida pointed out that even without a formal resolution, there will be strong signals indicating that the Federal Reserve will terminate quantitative tightening in December.