Research firm Wrightson anticipates that the Federal Reserve may announce the cessation of its balance sheet reduction this week. This prediction comes as the overnight lending market experiences tighter financing conditions, with bank reserves nearing equilibrium. Wrightson analysts suggest that the Fed's potential decision aims to alleviate pressure on the money market, especially in light of recent warning signals in the federal funds rate.
Wrightson Forecasts Fed to Halt Balance Sheet Reduction
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