Fed Ends Quantitative Tightening (QT) - What Happened Last Time?

Talkmarkets
2025.12.10 12:56
portai
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The Federal Reserve's latest quantitative tightening (QT) cycle ended on December 1, 2025, reducing the balance sheet by approximately $2.2 trillion to $6.7 trillion. This marks the second real QT in history. Historically, ending QT is bullish for risk assets, as seen in 2019 when the S&P 500 rallied 12% in five months. With QT ending again, markets anticipate a liquidity boost, barring any new shocks.