Will US Fed call ‘time’ on QT in second quarter?

SINGAPORE - The United States Federal Reserve looks set to announce that it will end quantitative tightening (QT) in the second half of 2019, according to ANZ Bank.

ANZ says this would allow the Fed to slow the reduction of its reserve liabilities as it approaches a level that is efficient and effective for operating monetary policy.

"Stopping QT makes sense, given that the Fed has paused on its rate normalisation,:  ANZ says.

"Ending QT also removes a potential distraction and/or source of disruption for financial markets."  www.live.anz.com (ATI).