FRB Ends Three-and-a-Half-Year Quantitative Tightening, Potential Liquidity Improvement for Cryptocurrency Market

2025/12/02 19:29 (Updated 2025/12/03 07:01)
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Written by Enzo
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FRB Ends Three-and-a-Half-Year Quantitative Tightening, Potential Liquidity Improvement for Cryptocurrency Market

QT Concluded on December 1

The Federal Reserve Board (FRB) officially ended its quantitative tightening (QT) policy on December 1. This decision was announced during the Federal Open Market Committee (FOMC) meeting held from October 28 to 29.

QT refers to a monetary tightening policy where the FRB does not reinvest the principal payments from maturing Treasury securities and mortgage-backed securities (MBS), thereby reducing its balance sheet and absorbing liquidity from the market.

Starting in June 2022, the FRB began QT to normalize its balance sheet, which had expanded significantly in response to the COVID-19 pandemic and to address high inflation...

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MAGAZINE

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March 2026 issueReleased on 2026/01/30
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