Market watchers expect the Fed's quantitative tightening policy to end later this year

As the debate heats up on Wall Street over when the Federal Reserve will end its current quantitative tightening (QT) program, strategists are looking to the Fed for more guidance when it releases the minutes of its latest policy meeting on Wednesday. While most market observers expect QT to end later this year, the exact timing is far from certain. This has drawn attention to the minutes of the July meeting, which may also provide clues about the direction of interest rates. In the past week, the New York Fed has released a series of research reports on monetary policy implementation and reserve balances, which are key themes for the eventual end of QT. Steven Zeng, U.S. interest rate strategist at Deutsche Bank, believes these may be signals used by policymakers as they approach the end of the program. (Jinshi)