Fed to end quantitative tightening

To counter the economic impact of the pandemic, the Fed embarked on a program of quantitative easing, buying up trillions of dollars’ worth of securities to keep long-term interest rates low. 

As a result, the central bank’s balance sheet swelled to close to $9 trillion.

Since 2022, the Fed has been reversing that stimulus through quantitative tightening, letting its balance sheet shrink by $2.2 trillion.

And some experts think conditions in the money markets indicate that the Fed is in danger of repeating its 2019 mistake of taking too much liquidity out of the system. 

They are urging the Fed to restart buying securities.

MarketWatch 28 October 2025

https://www.marketwatch.com/story/the-fed-looks-set-to-end-its-massive-market-intervention-can-it-do-that-without-spooking-traders-e15f2233



The Fed’s $6.6 Trillion Test; QT after QE
https://englundmacro.blogspot.com/2025/10/the-feds-66-trillion-test-qt.html


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