📊 *Why the Fed’s Balance Sheet Is the Market’s Hidden Signal*
While most focus on interest rates, the *balance sheet reveals the real story* behind market liquidity.
*The Setup:*
In December 2025, the Fed wrapped up its Quantitative Tightening (QT), quietly injecting *13.5B* back into the system — the biggest move since COVID-era interventions.
*Current Levels:*
Total Fed assets are hovering near *6.5 trillion*.
*Key Zones to Watch:*
🔺 *Above 6.6T* → Could trigger a market pullback as traders adjust to excess liquidity.
⚖️ *6.5T – 6.6T* → Expect chop and volatility as markets find direction.
🔻 *Below6.5T* → A red flag. May hint at deeper systemic stress or a faster liquidity drain.
*Bottom Line:*
The balance sheet is the real-time pulse of Fed support — and smart money is watching it closely.
