Wall Street Uncertain Over When Fed's Balance-Sheet Unwind Will End

The Federal Reserve’s decision to cut the pace of its balance-sheet unwind is leading some Wall Street strategists — including those at Barclays and Bank of America — to push out their expectations for how long the central bank’s runoff will go on.

Officials, who left interest rates unchanged on Wednesday, said that starting April 1 they’ll lower the cap on the amount of Treasuries allowed to mature without being reinvested to $5 billion from $25 billion. The Fed will leave the cap on mortgage-backed securities unchanged at $35 billion.