QT Ends Today Amid Repo Surge: What This Means For Overall Liquidity

After a one month self-imposed delay by the Fed which drained tens of billions in liquidity, the Fed's balance sheet runoff (i.e. QT) ends today.

As a reminder, the Fed's quantitative tightening (QT) process began in the middle of 2022, but it wasn't until the second half of 2025 that the cumulative effects of runoff made a lasting dent in the level of reserves. Following the mid-2025 resolution to the debt limit impasse, the rebuild in Treasury's cash balance (the TGA) took the domestic reverse repo (RRP) facility to near zero and reserves held at the Fed sharply lower.