Fed expected to cut interest rates while ending bond drawdown

As Wall Street’s expectations have rapidly shifted toward an imminent end to the Federal Reserve’s effort to shrink its bond holdings, some analysts also anticipate a return to balance sheet expansion in relatively short order.

A wide range of economists in recent days has called for the Fed to announce an end to its quantitative tightening (QT) at the conclusion of its two-day policy meeting on Wednesday. The US central