QT Ends as Fed Navigates Unusual Economic Conditions

[bonk]

The December 1 QT halt comes just before a highly unusual December 10 FOMC meeting, where policymakers lack fresh CPI data due to a 43-day government shutdown.
Inflation remains at 3%, federal debt surpasses $36T, and the Standing Repo Facility is now a permanent daily liquidity backstop, marking the start of the so-called “Standing Repo Era.”
Some analysts predict immediate upside for crypto; others expect delayed but strong liquidity-driven momentum.
Either way, December 1 marks a major structural pivot with long-term implications for risk assets.

[Nahid Hossen]

The end of QT reflects the Fed’s struggle with current economic complexity.

[Rimon Khan]

Unusual conditions often lead to major shifts in liquidity cycles.