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[The Federal Reserve May End Quantitative Tightening This Week, Market Pressure Emerges] The Federal Reserve is expected to end its three-year-long quantitative tightening policy this week to ease pressure on the banking sector. Earlier this month, some bank lending institutions utilized the Federal Reserve's backstop funding mechanism, with usage levels reaching those seen during the pandemic. Since the launch of quantitative tightening in June 2022, the Federal Reserve has allowed over $2 trillion in U.S. Treasury bonds and mortgage-backed securities to roll off its balance sheet. Evercore ISI Vice Chairman Krishna Guha stated that the market widely anticipates the Federal Reserve to terminate quantitative tightening this month. Former Federal Reserve Vice Chair Richard Clarida noted that even if no formal decision is announced, the Federal Reserve may signal the end of this policy clearly by December.

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