Fed Ended Quantitative Tightening: What It Really Means for Markets (No, Its Not Full-Blown QE)Hey everyone, saw a lot of hype around the Feds recent move, but lets break it down with the actual facts to cut through the noise. On October 29, 2025, the FOMC announced theyd end quantitative tightening (QT) effective December 1, 2025. QT was the Fed letting $60B in Treasuries and $35B in MBS roll off their balance sheet each month to shrink it post-pandemic. Now? Theyre pausing that runoff.Key Details:Reinvestment Mode: Starting Dec 1, the Fed will reinvest principal payments from maturing securities back into the market (mostly short-term Treasuries). This keeps the balance sheet roughly stable around $7 trillion—no active buying to expand it like in QE rounds.

Not QE: QE involves outright purchases to pump liquidity (e.g., $80B/month in 2020-21). Here, its just maintenance. No new money printing press cranking out billions.

Liquidity Impact: Expect $20-30B/month in reinvestments based on recent runoff paces (actual QT slowed to ~$20B/month by late 2025). Analysts like BofA speculate up to $45B if they buy short-term bills for bank reserves, but thats not official—its tied to liquidity needs, not a fixed program. Weve seen small repo ops ($13.5B in early Dec) to smooth things, but nothing massive yet.

Why It Matters:For Stocks/Crypto: Ending QT eases liquidity drains, which could support risk assets (think 2019-2020 vibes when QT paused). Bitcoins up ~5% since the announcement, but dont call it a moonshot trigger—its more like removing a headwind.

Bigger Picture: With rates at 4.25-4.50% and inflation cooling, this sets up for potential cuts in 2026. Watch the Jan 29 FOMC for clues.

Sources: Official FOMC statement (federalreserve.gov), Bloomberg/Reuters recaps. If youre trading, DYOR—markets love narratives, but facts keep you grounded.What do you think—bullish pivot or just steady state? Drop your takes below! #WriteToEarnUpgrade