JPMorgan Chase and Bank of America strategists expect the Federal Reserve to end its balance sheet reduction program this month, concluding the liquidity withdrawal operation that began in June 2022, BlockBeats reports. Both banks advanced their forecasts due to recent increases in borrowing costs within dollar funding markets, having previously projected the runoff would cease in December or early next year. Mark Cabana and Katie Craig of Bank of America noted in their Thursday report that current elevated money market levels should signal to the Fed that reserves are no longer "ample," with elevated repo rates and funding pressures indicating the system is approaching reserve scarcity. At JPMorgan, strategists led by Teresa Ho stated this week's funding conditions prompted them to move up their timeline, as the market has been "operating with more friction" following depletion of the Fed's reverse repo facility.