Analysis: The end of QT by the Federal Reserve does not mean that the balance sheet will immediately rebound, or that it will have to wait until early 2026

Cryptocurrency analyst Benjamin Cowen posted that the Federal Reserve announced the end of quantitative tightening (QT) on August 1, 2019, but since the final round of Treasury bond maturities was settled only by mid-August, the Fed's balance sheet continued to decline in August.

This time, QT ends on December 1, and this does not mean that the balance sheet will immediately start to rise; he believes it may not be until early 2026 that we see such an increase.