Federal Reserve minutes reveal policy divide and QT end

Wednesday, November 19, 2025 at 20:00 UTC+01:00 (+0100), United States, Washington, D.C.

News category : Macroeconomic Events

The Federal Reserve published the minutes of its October 28–29 meeting, revealing a clear split among policymakers over the timing and scale of future rate cuts while signalling support for winding down quantitative tightening (QT) sooner than markets had priced. Several participants argued for caution on further cuts given upside inflation risks, while others supported additional easing if data softened. Crucially, the minutes indicate a plan to halt the balance-sheet runoff on December 1 and to tilt holdings toward short-term Treasury bills—moves intended to restore some liquidity and simplify implementation of policy. Market reaction was immediate: short-term rate futures repriced the odds of near-term cuts, US Treasury yields and repo rates moved, and the dollar and risk assets reacted to the revised liquidity trajectory. The minutes provided both a nearer-term path for the Fed’s balance sheet and a reminder that the rate outlook remains data-dependent and politically sensitive.

Overall market impact

Strong mixed market impact - strength score : 88/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

US Treasuries

USD FX

US equities

Interest rate futures

Money-market rates

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