The FOMC will lower the Funds rate by 0.25% when the FOMC meets on Wednesday October 29, which won’t be a surprise to anyone. Financial markets will react positively if the FOMC announces they will be ending their Quantitative Tightening program since this move represents another easing of monetary policy. The FOMC has been shrinking its balance sheet since it peaked in June 2022 at $8.9 trillion by allowing $60 billion of Treasury paper and $35 billion a month in Mortgage-Backed-Securities (MBS) to roll off without reinvesting the proceeds. In April 2025 the FOMC decided to reduce the...
