Federal Reserve Ends Quantitative Tightening, Balance Sheet Declines Continue

The Federal Reserve has officially concluded its quantitative tightening program, marking a shift in monetary policy as the balance sheet continues to shrink. According to BlockBeats, Into The Cryptoverse CEO Benjamin Cowen notes that this action followed the Fed’s announcement of an end to quantitative tightening in 2019. Notably, even after completing their final round of Treasury settlements on August 1st, the Federal Reserve’s balance sheet has yet to reflect significant changes. While the current phase of quantitative tightening concluded on December 1st, it’s estimated that any observable shifts in the balance sheet could take until early 2026.