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Bank of America: Forecast for the Federal Reserve to end balance sheet shrinkage postponed to the end of March 2025

Bank of America strategists Mark Cabana and Katie Craig said in a report that the bank now expects the Fed to end its balance sheet reduction by the end of March 2025, compared with a previous forecast of December 2024, due to little discussion of its policy by policymakers. The September FOMC meeting showed that the Fed believes that policy rate and balance sheet changes are independent of each other.