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Fed Ends QT Program in Major Policy Shift

Fed Ends QT Program in Major Policy Shift

Published:
2025-12-02 16:09:02
BTCCSquare news:

The Federal Reserve has halted its quantitative tightening program after three years, marking a pivotal moment in post-pandemic monetary policy. The central bank’s balance sheet shrank by $2.2 trillion during the 2022-2024 cycle, including $1.6 trillion in Treasuries and $600 billion in mortgage-backed securities—one of the largest contractions in its history.

Bank reserves have stabilized at levels the Fed deems safe, reducing risks of a repeat of the 2019 repo market crisis. Traders now price in an 88% chance of a 25-basis-point rate cut by December, reflecting expectations of looser policy ahead.

|Square

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