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<div class="key-points-section"><b>Key Points:</b>
 <ul>
  <li>Federal Reserve to end Quantitative Tightening.</li>
  <li>Interest rates lowered to 3.75–4%.</li>
  <li>Market impact expected; increased liquidity anticipated.</li>
 </ul>
</div>
<p>The U.S. Federal Reserve has announced the end of Quantitative Tightening on December 1, 2025, marking a shift in monetary policy.</p>
<p>Ending QT could impact liquidity and market sentiment, potentially boosting assets like BTC and ETH.</p>
<p>The U.S. Federal Reserve has announced an end to <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20251029a.htm" rel="noopener noreferrer nofollow">Quantitative Tightening</a> starting December 1, 2025. This marks a pivot in monetary policy aimed at economic stabilization.</p>
<h2 id="jerome-powell-chair-of-the-federal-reserve-and-the-federal-open-market-committee-are-the-key-players-in-this-change-the-committee-cited-increased-risks-to-employment-as-a-factor-in-their-decision">Jerome Powell, Chair of the Federal Reserve, and the Federal Open Market Committee are the key players in this change. The committee cited increased risks to employment as a factor in their decision.</h2>
<blockquote>
 "The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment rose in recent months." — <strong>Jerome Powell, Chair, Federal Reserve</strong>
</blockquote>
<p>The decision is expected to influence global financial markets, including cryptocurrencies like BTC and ETH. Liquidity is projected to increase due to the halt in balance sheet runoff.</p>
<p>Interest rates have been reduced, potentially boosting market liquidity and investor sentiment. U.S. financial markets may experience shifts as the Federal Reserve resumes <a href="https://www.newyorkfed.org/markets/market-news/2025/01/fed-kicks-off-reinvestment-of-treasuries.html" rel="noopener noreferrer nofollow">reinvestment operations</a>.</p>
<p>Major cryptocurrencies may respond favorably as risk appetite returns. Market participants are advised to monitor activities closely. Historical trends suggest a positive impact on asset prices during past balance sheet expansions. The Federal Reserve's strategy could enhance liquidity, shifting market dynamics and affecting various sectors.</p> <a href="https://coinwy.com/fed-ends-quantitative-tightening-2025/" rel="noopener noreferrer nofollow">Read original article on coinwy.com</a>

Fed Ends Quantitative Tightening by December 2025

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