đ„đ„ âPowellâs Power Move! đŁ Victory or a Warning?â đ„đ„
đš The Federal Reserve has officially declared the end of Quantitative Tightening (QT)!
Markets are buzzing đ â traders are cheering for more liquidity and the start of a new rally đđ°
But wait! đł History tells a very different storyâŠ
When the Fed stops tightening, itâs rarely a sign of strength â itâs usually a signal of stress.
This move often means something under the surface of the economy is starting to crack đ„đ
đ Since 2003:
â Markets gained an average +16.9% during QT
â ïž Only +10.3% during QE
Even since 2022, when the Fed drained $2.2 trillion from the system, the S&P 500 still rose 20%+!
Why? Because tightening happens when the economy is strong.
Easing? đ Thatâs when the Fed starts worrying.
đŹ QE isnât a reward for stability â itâs a rescue plan!
Think back to 2008 đŠ or 2020 đ· â QE always shows up during crises, never during calm times.
So now that Powell has ended QT, this isnât just a âcelebration signalââŠ
It might be a warning bell đ instead.
𧚠Growth is slowing, liquidity pressure is rising, and the Fed is moving to protect the system.
đ Sure, the market might rally short term â but remember:
When the Fed turns soft, storms often follow. đȘïž
đ
âWhat do YOU think â is this the start of a rally or the sound of a crash coming?
Drop your thoughts in the comments đđ„