FED ENDS QT: $24.4B WEEKLY SURGE (LARGEST SINCE 2023 CRISIS)
The Fed just flipped the switch. Balance sheet expansion is here.
THE FACTS
🔹 Weekly Surge: +$24.4B (Dec 24) - Largest since March 2023 banking crisis
🔹 Three-Week Total: +$45.5B expansion
🔹 Current Balance Sheet: $6.58T (highest since October)
🔹 QT Ended: December 1, 2025
🔹 Active Purchases Started: December 12, 2025
WHAT'S HAPPENING
Fed's New Program (RMPs):
•Buying $40-60B Treasury bills monthly (Dec 2025 - Apr 2026)
•Drops to $20-25B monthly after April
•Total 2026 projection: $450-550B
Why Now:
•Reserve levels approaching critical "ample" threshold
•October 2025 stress signals (COMEX halt, repo spikes)
•Preemptive action (avoiding 2019 repo crisis repeat)
THE NUMBERS
Metric
Value
Balance Sheet Peak (COVID)
$9.0T
QT Trough (Dec 2025)
$6.6T
Current Level
$6.58T
2026 Projection
$7.0-7.1T
Total QT Reduction
-$2.4T
MARKET IMPACT
What This Means:
•Liquidity flooding back into financial system
•Risk assets historically benefit (crypto, equities, commodities)
•Dollar pressure potential
•Treasury bill yields affected
Historical Pattern:
•Balance sheet expansion = bullish for Bitcoin, gold, stocks
•Last expansion (2020-2022) = massive rally across all risk assets
Q/A1)
"The Fed's $7 Trillion Playbook: How Balance Sheet Expansion Reshapes Your Portfolio in 2026"
Q2: Is the Fed's balance sheet expansion bullish for crypto and risk assets? What's your portfolio move?
#Binance #crptonews