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Wall Street Sees Fed Bond-Runoff End Well Before Powell Timeline

  • The Fed’s debt roll-off hits peak monthly pace in September
  • Barclays analysts see debt roll-off slowing in first quarter
Updated on

The Federal Reserve is penciling in at least another couple of years of running down its bond portfolio of around $8 trillion. But observers are increasingly predicting it will end a whole lot sooner than that.

Even before the Fed’s balance-sheet runoff plan, known as quantitative tightening, gets up to full speed in September -- at a monthly clip of up to $95 billion, or over $1.1 trillion a year -- two camps of economists and strategists have emerged predicting an early end, at some point in 2023.