Fed Halts QT, Emphasizing Liquidity Amid Rising Strain

The Federal Reserve has ended its three-year quantitative tightening (QT) program following a resurgence of liquidity pressure in U.S. money markets. This move comes amidst increased demand for overnight funding and a surge in short-term market volatility. While global financial tensions simmer, the Fed is taking steps to address the strain on banks by injecting billions into the system via emergency repo operations.