[Block Rhythm] has a quite interesting historical comparison.
Back in 2019, the Federal Reserve said they would stop the balance sheet reduction on August 1. What happened? The numbers on the books kept falling in August. Why? Because those matured Treasury bonds wouldn't be fully settled until mid-month.
It’s the same this time. Although the official announcement on December 1st stated that quantitative tightening has ended, don’t expect the balance sheet to warm up immediately. At this rate, it is estimated that we will have to wait until early next year — that is, around the beginning of 2026 — for the data to truly reflect.
There is always a time lag between policy implementation and data changes.
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DeFiDoctor
· 13h ago
This time difference is really frustrating; it's always this trap. We have to wait until early next year for the data to truly improve, and it feels really bad to see the account still falling right now.
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NFTArchaeologist
· 13h ago
It's this trap again, the official announcements are always a few weeks off from reality, and the market is still waiting for data.
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LightningLady
· 13h ago
Ha, here comes this trap again? You said you would stop, but the data still has to wait, always a beat behind.
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HackerWhoCares
· 14h ago
It's this trap again, stopping just like that, and the data won't move for another two months. The Fed's operations are quite deep this time, they did this back in 2019.
Quantitative tightening has ended, but don't rush to look at the data.
[Block Rhythm] has a quite interesting historical comparison.
Back in 2019, the Federal Reserve said they would stop the balance sheet reduction on August 1. What happened? The numbers on the books kept falling in August. Why? Because those matured Treasury bonds wouldn't be fully settled until mid-month.
It’s the same this time. Although the official announcement on December 1st stated that quantitative tightening has ended, don’t expect the balance sheet to warm up immediately. At this rate, it is estimated that we will have to wait until early next year — that is, around the beginning of 2026 — for the data to truly reflect.
There is always a time lag between policy implementation and data changes.