Fed's Playbook: QE vs QT

How Central Banks Manipulate Economic Size

The Invisible Hand: The World's Largest Monetary Experiment

The Federal Reserve acts as the navigator of the global economy. They use two primary strategies to control the money supply.

Quantitative Easing (QE)

Fed buys bonds to inject cash. This lowers rates and encourages buying risky assets (Stocks/Crypto).

Quantitative Tightening (QT)

Fed lets bonds mature or sells them. This pulls cash out, increasing pressure on asset prices.

Core Question: 'Is the Fed blowing wind into the sails (QE) or pulling the anchor (QT)?'