Wall Street Is Trying to Nail Down Timing of Fed’s QT Taper
- Dallas Fed’s Logan says pace of unwind may need to slow
- BofA, expects April taper start; Morgan Stanley eyes September
The Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
With the Federal Reserve telegraphing plans to begin slowing the pace of its balance-sheet unwind, market participants are rushing to determine just how soon the end of quantitative tightening could start.
Strategists at Bank of America Corp. and Barclays Plc predict that the central bank is likely to begin tapering the program in April, with the runoff wrapping up by mid-summer. Deutsche Bank AG expects the unwind start in June, while Morgan Stanley is telling clients that policymakers want to give markets plenty of time to prepare, and won’t act until September.