🚨 A quiet shift is happening at the Federal Reserve

After nearly 2 years of Quantitative Tightening the Fed’s balance sheet is expanding again
Here’s what changed:
• Current balance sheet: $6.736 trillion
• Highest level since: April 2025
• Increase from the 2026 low: +$236 billion (+3.6%)
• Cycle low: Around $6.5 trillion
For context:
During QT, the Fed reduced its balance sheet from $8.9 trillion to $6.5 trillion, removing liquidity from the financial system.
Now, that direction has reversed
The Fed says this isn’t QE
But here’s the key point:
• A larger Fed balance sheet = more liquidity
• More liquidity generally supports financial assets
• The name may be different, but the effect is similar
Does this mean full-scale QE is back?
Not necessarily
But it does mean the Fed is no longer shrinking its balance sheet
And liquidity is moving in the opposite direction for the first time in years.
In markets, direction often matters more than the label.