In Today’s Masters in Trading: Live Yesterday, the Federal Reserve cut the federal funds rate by 25 basis points to a target range of 3.75%–4.00%. That’s the story grabbing all the headlines right now. But there’s an even bigger pivot in the works that the markets are absolutely bracing for. The Fed just announced the end of Quantitative Tightening (QT) effective December 1, 2025. That means the Fed will soon begin fully reinvesting maturing Treasury and mortgage-backed securities rather than allowing them to roll off its balance sheet. This move effectively ends the balance-sheet runoff that has been removing roughly $60–$90 billion per month in liquidity. It also marks the first time since 2019 that the Fed has shifted from outright balance-sheet contraction to a neutral stance. That balance-sheet runoff was the largest quantitative tightening program since 2022. Now, the central bank is committed to stopping the withdrawal of liquidity from the financial system. Ending QT is not a cosmetic move. It fundamentally changes how capital flows, how assets are valued, and how risk is priced. Halting it removes a steady headwind to reserves, collateral availability, and overall market liquidity. And that will ease financial conditions across the board. Think about it. Dollar funding pressures will decline. Repo markets will begin to stabilize. And reserve balances will likely begin to rebuild from here. This is exactly what investors want to see. More liquidity in the system means more fuel for risk assets. This is the kind of shift that doesn’t just move individual stocks – it moves entire market sectors. Back on the trading floor at the CME, we lived for moments like this. When the Fed changes course on liquidity, it creates opportunities across volatile stock plays, equity indices, and entire sectors. The key is knowing where the smart money is positioning as markets chart a new course after the Fed’s pivot. So join me TODAY for Masters in Trading LIVE at 11 AM ET. I’m breaking down the Fed’s liquidity pivot and showing you exactly how we’re positioning for what comes next. 
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