JPMorgan, BofA Say Fed Is Poised to Stop Balance Sheet Runoff

Strategists at JPMorgan Chase & Co. and Bank of America Corp. expect the Federal Reserve to stop shrinking its roughly $6.6 trillion balance sheet this month, bringing an end process designed to remove liquidity from financial markets.

Both banks brought forward their calls on when the Fed will end quantitative tightening — the unwind of its portfolio of Treasuries and mortgage-backed securities — citing a recent rise in borrowing costs in dollar funding markets. They previously forecast the runoff, which began in June 2022, would end in December or early next year.

Fed officials are widely expected to address the ...