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Federal Reserve Officially Ends Quantitative Tightening

HalfDimeHalfDime 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

  • derrybderryb Posts: 38,539 ✭✭✭✭✭

    "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.

  • blitzdudeblitzdude Posts: 7,586 ✭✭✭✭✭
    edited December 3, 2025 4:07PM

    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? :sunglasses:

  • derrybderryb Posts: 38,539 ✭✭✭✭✭

    @blitzdude said:
    Sounds like another Nothingburger™. I predict tomorrow and the next day will pretty much mirror yesterday and today. THKS!

    that's pretty short term thinking.

    Velocity, Not Valuation Defines A Bubble.

  • dcarrdcarr Posts: 10,016 ✭✭✭✭✭

    @blitzdude said:
    Sounds like another Nothingburger™. I predict tomorrow and the next day will pretty much mirror yesterday and today. THKS!

    .

    So Federal Reserve actions are a "nothingburger" ?
    A while ago you were proclaiming "god bless the FED".

    .

  • dcarrdcarr Posts: 10,016 ✭✭✭✭✭
    edited December 4, 2025 2:15AM

    @derryb said:

    @blitzdude said:
    Sounds like another Nothingburger™. I predict tomorrow and the next day will pretty much mirror yesterday and today. THKS!

    that's pretty short term thinking.

    .

    It is hard to think about three days from now when you can't remember three days ago.

    .

  • RedneckHBRedneckHB Posts: 20,148 ✭✭✭✭✭

    @HalfDime said:
    "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.

    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.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • carew4mecarew4me Posts: 3,664 ✭✭✭✭

    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.”
  • blitzdudeblitzdude Posts: 7,586 ✭✭✭✭✭

    @dcarr said:

    @blitzdude said:
    Sounds like another Nothingburger™. I predict tomorrow and the next day will pretty much mirror yesterday and today. THKS!

    .

    So Federal Reserve actions are a "nothingburger" ?
    A while ago you were proclaiming "god bless the FED".

    .

    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? :sunglasses:

  • dcarrdcarr Posts: 10,016 ✭✭✭✭✭
    edited December 5, 2025 8:45AM

    @blitzdude said:

    @dcarr said:

    @blitzdude said:
    Sounds like another Nothingburger™. I predict tomorrow and the next day will pretty much mirror yesterday and today. THKS!

    .

    So Federal Reserve actions are a "nothingburger" ?
    A while ago you were proclaiming "god bless the FED".

    .

    Yes god bless the FED. One of the greatest institutions this once great nation has ever known. Your point? THKS!

    .

    • On one side you state how important the Federal Reserve is.
    • On the other side you state that one of the FED's most significant policy decisions is a "nothingburger".

    This is contradictory. At least one of the statements is FALSE.

    .

  • blitzdudeblitzdude Posts: 7,586 ✭✭✭✭✭

    @dcarr said:

    @blitzdude said:

    @dcarr said:

    @blitzdude said:
    Sounds like another Nothingburger™. I predict tomorrow and the next day will pretty much mirror yesterday and today. THKS!

    .

    So Federal Reserve actions are a "nothingburger" ?
    A while ago you were proclaiming "god bless the FED".

    .

    Yes god bless the FED. One of the greatest institutions this once great nation has ever known. Your point? THKS!

    .

    • On one side you state how important the Federal Reserve is.
    • On the other side you state that one of the FED's most significant policy decisions is a "nothingburger".

    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? :sunglasses:

  • HalfDimeHalfDime Posts: 965 ✭✭✭✭✭

    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.

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