---
title: "Powell hints that the balance sheet reduction is nearing its end, and TD Securities expects the Federal Reserve to announce its conclusion at the October meeting"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/261139445.md"
description: "Federal Reserve Chairman Jerome Powell hinted that the balance sheet reduction may stop in the coming months, prompting Wall Street strategists to adjust their expectations. TD Securities expects the Federal Reserve to announce the end of the balance sheet reduction at the October meeting, ensuring that Treasury bonds will no longer be allowed to mature naturally starting in November. Wells Fargo strategists also believe that the Federal Reserve will end the balance sheet reduction by the end of the year"
datetime: "2025-10-14T22:20:41.000Z"
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  - [zh-CN](https://longbridge.com/zh-CN/news/261139445.md)
  - [en](https://longbridge.com/en/news/261139445.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/261139445.md)
---

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# Powell hints that the balance sheet reduction is nearing its end, and TD Securities expects the Federal Reserve to announce its conclusion at the October meeting

Federal Reserve Chairman Jerome Powell hinted on Tuesday that policymakers may stop the balance sheet reduction in the coming months, prompting some Wall Street strategists to begin adjusting their expectations for when the Fed will end the balance sheet reduction.

TD Securities, which recently pushed back its expected end date for the balance sheet reduction to the end of March, now anticipates that the Fed will announce the end of the balance sheet reduction at the October FOMC meeting. This would ensure that the Fed will no longer allow Treasury bonds to mature naturally starting in November.

“We have been waiting for the Fed to signal that this has become a focus for them,” said Gennadiy Goldberg, head of U.S. interest rate strategy at TD Securities. “There were almost no signs of this before, but now there are.”

“We had previously pushed back our expectations for the end of quantitative tightening by three months, so we decided to push it back a little further. The timing turned out to be less than ideal,” he said.

Meanwhile, Wells Fargo strategist Angelo Manolatos wrote in a report that he still expects the Fed to end the balance sheet reduction by the end of the year, noting that the median guaranteed overnight financing rate in October has consistently been above the reserve balance rate

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