#DecemberRateCutForecast

Everyone's fixated on interest rate cuts... but the real big story is the end of QT.

Since 2022, the Fed has been shrinking its balance sheet, with every maturing Treasury and mortgage asset leaving the system entirely.
No reinvestment. No replacement.
The result? $2.2 trillion in liquidity has been drained from the market in three years.
This largely explains why risk assets (stocks, crypto, etc.) have struggled for so long.

But now the picture is changing—and in a much more dramatic way than it seems.

The Federal Reserve announced QT end on December 1st and QE will begin.

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