The Federal Reserve has officially pressed the stop button on QT.
Although this step is more symbolic in terms of the actual scale of balance sheet reduction, given that the pace of reduction has clearly slowed recently, its direct impact may be limited. However, in the current market environment, the signal of stopping the reduction itself has a significant psychological impact.
Market sentiment often leads actual data. A continuous outflow of funds, even if only slowing down, can provide a moment of respite for strained nerves. It conveys a key expectation that the most severe phase of liquidity tightening may have passed, and the policy balance is tilting from "suppressing inflation" to "focusing on growth."
Ultimately, having hope itself is an important support. It can provide an anchor for the market, allowing cautious funds to begin reassessing risks and mentally preparing for the potential upcoming easing cycle.