TL;DR

The Fed just announced it will wrap up its quantitative tightening (QT) program on December 1st. In plain English, the central bank’s been letting its balance sheet shrink—but that run is ending soon, which could inject more liquidity into the system and give risk assets a nice little boost.

Why It Matters

With QT off the table, borrowing costs and market sentiment could shift in favor of stocks, crypto and other growth bets. Traders and investors will be watching Fed communications closely for clues on how long the ultra-easy vibes stick around once QT is officially in the rearview.

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