📊 Key Details
- In October 2025, the Federal Open Market Committee (FOMC) announced its intention to end the Quantitative Tightening (QT) program.
- The decision took effect on December 1, 2025, meaning the Federal Reserve stopped selling or not reinvesting bonds at maturity.
- This shift reflects the Federal Reserve's belief that bank reserves have reached a "sufficient" level, thus there is no longer a need to withdraw liquidity from the markets.
---
🔍 Why is this important?
- Liquidity: Ending QT alleviates pressure on money markets and increases the flexibility of the financial system.
- Markets: The decision prompted investors to reassess their expectations regarding interest rates, currencies, and gold, as precious metal prices rose to unprecedented levels.
- Monetary Policy: This shift represents the beginning of a new phase of monetary easing after three years of tightening since June 2022.
---
💡 Conclusion
Ending the Quantitative Tightening program marks a turning point in U.S. monetary policy and indicates that the Federal Reserve now prefers to maintain financial stability rather than continue to shrink its balance sheet. This move could signal the beginning of a more supportive phase for growth, with broad implications for currencies, stocks, and gold.
🚀
⚠️ Not investment advice, do your own research before making any decisions. $BTC
