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

Market Intelligence Analysis

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Why This Matters

JPMorgan and Bank of America strategists predict the Federal Reserve will stop reducing its $6.6 trillion balance sheet this month, potentially injecting liquidity back into financial markets.

Market Impact

Moderate to High: A potential stop to the balance sheet runoff could lead to increased liquidity in the market, potentially boosting asset prices, particularly in the bond and equity markets.

Sentiment
Bullish
AI Confidence
70%

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

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.

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Original article published by Bloomberg on October 23, 2025.
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