ANALISTA Igor Pereira Posted December 14, 2025 ANALISTA Report Share Posted December 14, 2025 While the market celebrates the end of Quantitative Tightening (QT) by the Federal Reserve — officially completed on December 1, a silent threat to global liquidity continues to grow from other fronts. By Igor Pereira New data projects that the world's leading Central Banks (G4) will continue to shrink their balance sheets aggressively, removing trillions of dollars from the financial system in the coming years. Despite the Fed's pause, the global monetary tightening is far from over: The "Trio" of Clutch: The European Central Bank (ECB), the Bank of England (BoE) and the Bank of Japan (BoJ) should reduce their balance sheets in - $1.2 trillion. only in 2026. Run-off acceleration: The speed at which these banks are letting titles win without reinvesting (run-offs) will accelerate, virtually cancelling the relief generated by the end of the Fed QT. To understand the impact, we need to look at the consolidated G4 numbers (USA, Europe, United Kingdom, Japan): 2024: Central banks have reduced their total assets in - $1.4 trillion.. 2025: The forecast is an additional reduction of - $1.3 trillion. By the end of the year. The Perspective: Between 2020 and 2021, these banks injected +$7.7 trillion to fight the pandemic. If the projections for 2026 come true, they will have removed $5.0 trillion between 2023 and 2026. This represents a reversal of 65% of all pandemic stimulation. ExpertFX Analysis: What Does It Mean for Markets?Global liquidity is the "oxygen" of risk assets (Actions and Crypto). The conclusion is clear: Global liquidity will remain tight.The graph shows deep red bars for 2025 and 2026, indicating liquid capital drainage. This creates an environment where assets cannot rise only based on "easy money" floating in the system. Investors will have to be much more selective. Paradox: The Fed stopped pressing (which is positive), but the rest of the developed world is stepping on the brake harder. This can generate currency volatility, especially strengthening currencies where the tightening is more aggressive than the dollar. At ExpertFX School, we follow the money — or, in this case, his disappearance.Igor Pereira Your Financial Market Analyst Perfect! Thanks! Love it! Haha Confused :/ Oush! Wow! Liked! × 💬 Did you like this content? Your feedback is very important! Liked! Perfect! Thanks! Love it! Haha Confused :/ Oush! Wow! Quote Link to comment Share on other sites More sharing options...
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