Federal Reserve Officially Ends Quantitative Tightening
HalfDime
Posts: 965 ✭✭✭✭✭
"The Federal Reserve has officially announced the end of its Quantitative Tightening (QT) program (Dec. 1st), marking a significant shift in U.S. monetary policy. The decision brings an end to the multi-year effort to reduce the size of the Fed’s balance sheet, a process that began after inflation surged in the post-pandemic economy.
Quantitative Tightening involved the gradual runoff of Treasury securities and mortgage-backed assets held by the Fed. By stopping QT, the central bank is no longer allowing its balance sheet to shrink.
This move effectively stabilizes liquidity in financial markets and signals that the Fed believes conditions are now suitable for a pause in tightening.
Alongside the announcement, the Fed injected additional liquidity into the banking system — a move aimed at keeping short-term interest rates stable and ensuring smooth functioning of credit markets."
...............................................
No more shrinking balance sheet and they are injecting liquidity into the system. The war on inflation is over for now.
Comments
"Fed believes conditions are now suitable for a pause in tightening." Fedspeak for lets consider loosening. Expect a return to QE.
"Alongside the announcement, the Fed injected additional liquidity into the banking system." Confirmation that there is a liquidity crisis and further reinforcement for more QE,
Velocity, Not Valuation Defines A Bubble.
Sounds like another Nothingburger™. I predict tomorrow and the next day will pretty much mirror yesterday and today. THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
that's pretty short term thinking.
Velocity, Not Valuation Defines A Bubble.
.
So Federal Reserve actions are a "nothingburger" ?
A while ago you were proclaiming "god bless the FED".
.
.
It is hard to think about three days from now when you can't remember three days ago.
.
The present administration is well versed in using debt and will use, use and use, to create the illusion of success and winning. They want interest rates as zero again. And as with this administration's past experiences with debt, the losers with be the issuers...today that being the USA.
It was said on here who is gold's best friend. Heck, it's even plastered all over the walls of America's House.
Knowledge is the enemy of fear
when Kevin Hassett is named Fed Chair rates will be slashed and QE will resume.
Loves me some shiny!
“Often wrong, but never in doubt.”
Yes god bless the FED. One of the greatest institutions this once great nation has ever known. Your point? THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
.
This is contradictory. At least one of the statements is FALSE.
.
No, actually I was referring to the articles that the OP and @derryb had cut and pasted from........Expect the sun to continue to shine and the bank accounts to continue be BOOMIN!™ THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
Next meeting details
The December 9–10, 2025 meeting is the final scheduled FOMC meeting of 2025 and is expected to include an updated Summary of Economic Projections. The policy statement and interest rate decision are typically released at 2:00 p.m. Eastern Time on the second day of the meeting, followed by a press conference from the Fed Chair around 2:30 p.m. Eastern.
........................................................
Interest rates may be lowered next week.