Theyre About To Reset Your Money Heres What You Need To Know

On December 1st, 2025, the Federal Reserve Bank is going to flip their economic policy again and most people are not going to realize it until they feel it in their investments or their savings. How do I know? Because the Fed just announced that they're going to end quantitative tightening come December 1st. In plain English, that means that the Federal Reserve Bank wants to start printing money and boosting markets again as we go into 2026 as a way to stimulate the economy. And the reason why I'm making this video specifically is because this economic shift is going to affect everybody. It affects the stock market, it affects the value of your savings, it even affects mortgage rates. And the people that understand this shift will be able to accelerate their wealth while the people that don't are going to slowly fall behind. So make sure you stick with me until the end of this video. Now we can see the full impacts of this shift in action. One of the best ways to understand quantitative tightening is to understand the And in March 2020, when our economy was shut down because of the pandemic, the Federal Reserve Bank launched quantitative easing as a way to stimulate the economy. And in simple terms, quantitative easing is what people on the internet call money printing. So the Federal Reserve Bank started printing trillions of dollars that way we could inject this money into our economic system to boost the economy and boost markets. And is what helped the stock market boom at record speeds in 2020 while we were in a recession. So the Federal Reserve Bank created more money, they printed money with quantitative easing, and then they lent this money to the United States government. The United States government then took all this extra money that was printed, and then they injected it into the economy. How? By number one, printing stimulus checks that went out into the hands of people. By number two, creating unemployment programs to give people big unemployment checks. By number three, creating PPP loans for businesses, so businesses could borrow huge sums of money and not have to pay it back. And then by giving grants to businesses. These were just a few of the ways that now this money was created and then injected into the economy, which helped the economy boom, which helped the stock market boom. Now, when you hear that, you might be scratching your head wondering, why doesn't the government do more of this? Because every single person is going to work to pay taxes. You go to work, you make money, you pay taxes to the government. And normally the government can only spend based off of what they generate from taxes. So if the government can just get this money printed by the Federal Reserve Bank, why do we have to pay taxes in the first place? And because there is a consequence to this type of money printing. In fact, the most expensive kind of money is free money. Because what we saw happen through all of this money printing by the Federal Reserve Bank is that some people became incredibly rich, and most people became poorer after the pandemic. Sure, there was a little period of time when this free money was going out that everybody felt rich because everybody had money to spend. But now as we look back to all that money printing, we can see that it helped some people become incredibly wealthy, but most people lost wealth. They became effectively poorer because their salary did not keep up with inflation, their savings did not keep up with inflation, and now it is more expensive because you have to pay more of your paycheck to pay for your rent and your groceries and your vacations, so you have less money to save and invest. Now, if you're a visual person like me, what this means in practicality with numbers is between 2020 to 2021, the United States government generated around $7.4 trillion in taxes over those two years, and then the United States government went out and spent a total of around $13.2 trillion on all of the programs, all the government normal programs, plus all these free money programs, which means that the Federal Reserve Bank had to essentially, if we do some basic math, create around $5.8 trillion. This is how much the United States government had to borrow to fund all of this, and a big chunk of this money came directly from the Federal Reserve Bank, which had to be printed. Now, the reason why this is so important for you to understand is because when this money printing was happening, everybody, including the government, said that this is not going to create inflation. Inflation is not going to be a problem. It's going to boost the economy and not have any negative consequences. Well, turns out they were wrong. Inflation was a problem. Inflation did become a problem, and people are still paying the price of it today, and the reason why this happens is because inflation benefits certain people more than others. Take a look. There are three types of entities in our economic system. We have consumers, which is everybody. Rich people, middle class people, poor people, everybody's a consumer because everybody buys clothes, everybody's got to eat, everybody needs a car, so everybody's a consumer. Then we have the businesses, so when you go to Chipotle and you spend money, that is the business, and then we have the investors, which actually own that business. These are the investors that own Chipotle. These are the investors that own Amazon, the investors that own Apple, and the way that our economic system works is consumers go and spend money at the business. You go and spend money at Chipotle. You go and spend money at Amazon, but the person that gets rich are not the workers in these companies. It is the investors that own those companies. Now, a lot of companies you can invest in yourself because, well, the stock market allows regular people to invest in these companies, but when people go and spend money that they didn't have because of the stimulus checks, the unemployment checks, the PPP loans, and the grants, and they spend this money in Amazon, Walmart, well, Amazon and Walmart investors are the ones that are getting rich, so when inflation happens and now more money is going into our economic system, that means consumption becomes more expensive because now that guac becomes a whole lot more extra. That means your groceries become more expensive. That means more dollars are going into those businesses, and it's not the workers that are getting rich. It is the investors, and how do we know this? Because what we have seen over the last five years is that wages have gone up, but they have not gone up to keep up with inflation. This is something that we've seen happen, that inflation disproportionately benefits the investor. Why? Because as more dollars are created, consumption becomes more expensive. If consumption becomes more expensive, it is the investor that gets rich. You have to understand this to see the opportunity out of what I'm about to show you. By the way, for those of you that are investors or want to become an investor, I have a free investing masterclass that I put together where I'll show you how you can get started as an investor and find hidden investment opportunities before everybody else, and I'll even show you the exact framework that my firm and I use to research investment opportunities before they hit the headlines. It's a completely free masterclass. There's a ton of value in there, and when you register for the masterclass, you're also going to get access to market briefs, which is my newsletter for investors, completely free, complimentary as a bonus. So if you want to get the investing masterclass and market briefs all for free, all you have to do is register, and I have the link for you to register down in the description below. So this quantitative easing, this money printing is what happened during 2020 to 2021, and then we started to see the impacts of inflation, and that was when in 2022, the Federal Reserve Bank says, uh-oh, this money printing, this quantitative easing is causing problems. So in 2022, we're going to try to reverse this, which is why in 2022, the Federal Reserve Bank did two things. Number one, they began raising interest rates in 2022 to make borrowing more expensive, and then they launched QT. QT is quantitative tightening. Quantitative tightening is the opposite of quantitative easing. Quantitative easing was printing money and injecting it into the economy. Quantitative tightening is reducing the amount of money in the economic system. Now, the way the Federal Reserve Bank reduces money in the system is by selling off assets on their balance sheet, which I'll talk a little bit more about towards the end of this video. You don't need to worry about that right now, but just understand that the Federal Reserve Bank then in 2022 tried to reduce the amount of money in the economic system as a way to fight off inflation. So 2020, 2021, and the beginning part of 2022, it was QE, quantitative easing. Then 2022 started quantitative tightening, QT. We saw quantitative tightening in 2022, 2023, and then into 2024. In 2024, though, that was when the Federal Reserve Bank cut interest rates for the first time. And then in 2025, the Federal Reserve Bank continued to cut interest rates, which makes borrowing money cheaper. And now they just announced that on December 1st, 2025, the Federal Reserve Bank is going to end quantitative tightening. Now, before I get into the implications of what the Fed ending quantitative tightening means going into 2026, let me talk about the three reasons why the Fed wants to end quantitative tightening now, starting with number one is What the Federal Reserve Bank has noted and said is that there's been a tightening in the amount of credit in our economic system, meaning bank reserves have been falling. In fact, right now, banks have the lowest number of reserve cash that we have seen since 2020. The reason why these bank reserves matter is because banks use their reserves to do two things. Number one, to pay back your withdrawals, and number two, to issue loans. So if a lot of people were to go to the bank and pull their money out, well, banks could struggle to do that. They might not have enough money to pay everybody back because their reserves are so low right now. In addition to that, number two is banks are using these reserves to issue loans. And so when banks are tight on the reserves, they can't issue as many loans. And this is where the Federal Reserve Bank is saying, hmm, this tightening of credit, this low liquidity of credit is going to make it difficult for our economy to continue to grow because businesses are going to have a tough time getting loans. People are going to have a tough time borrowing money. And if banks are not willing to lend money because of the low reserves, that's going to slow down the growth in the economy. And this is where the Federal Reserve Bank says we need to create more money to have our banks have more money to pay back your deposits. And so they have more money to lend out. Reason number two why the Federal Reserve Bank wants to end quantitative tightening is because of the shrinking and slowing job market. October 2025 was the worst October in terms of layoffs that we have seen in about 25 years. Why? Because of artificial intelligence. Artificial intelligence has been a big driver of layoffs in 2025 because companies are saying instead of us hiring more people, how about we just bring on AI agents? And maybe instead of having 10,000 employees, what if we just have 3,000 employees and 7,000 AI agents? So companies are using AI and other tools to try to be more efficient, meaning having less human employees, less cost, and trying to replace or subsidize departments through artificial intelligence. And this is where the Federal Reserve Bank is hoping that if we stop quantitative tightening and we increase the amount of liquidity out there, it'll make more cash prevalent in our economic system to encourage more business growth and more business investment. And if businesses have to invest in more departments and more growth and more stores, they're going to have to hire more people to help stimulate this job market. The only concern is what happens if there's less need for humans right now because AI is replacing more jobs than it's creating. Now it is anticipated that AI is going to create more jobs than it displaces, but that's not happening today. So the Federal Reserve Bank is hoping that by increasing the amount of dollars out there, they'll be able to stimulate lending, they'll be able to stimulate borrowing, they'll be able to stimulate business investment, which will hopefully stimulate the job market. And indirectly, number three, the Federal Reserve Bank is hoping that this will help lower mortgage rates. This one is going to be a little complicated, so stick with me as I explain this whole thing. When you go to your bank to borrow money for a mortgage, the way that your bank decides what the mortgage rate is today is by doing two things. Number one, they look at their cost of borrowing money, and then number two, they look at what their alternative investment opportunities are. So the way that the bank invests their money is by lending money. And when the bank lends their money, they can lend their money to you for a mortgage, they can lend their money to your broke cousin Bunty who's probably not going to pay them back, or they can lend their money to the United States government. Now your broke cousin Bunty is not a good borrower. He's got a horrible credit score, has got a bad income, so the bank, if they were to lend money to your broke cousin Bunty, they're going to require a very high interest rate because it's very risky. So that makes sense, more risk, so they need higher interest rates. But then on the flip side, when the bank is looking at the other investments, you and the United States government, the United States government is historically known as a risk-free investment because the United States government can always pay their bills. Why? Because number one, they can just raise your taxes, or number two, they can work with the Federal Reserve Bank to get that money printed, that way they can spend that money to pay back their bills. Now, of course, there's a lot more risk now because, well, if they pay that money back with inflated dollars, the value of what you get is not as much as what it was before, but that's besides the purpose. If the United States government is paying an interest rate, let's just say of 4%, they're not going to charge you 3% because you are a more risky investment than the government, so they're going to charge you more than what the government is willing to pay. Now the United States government is always trying to borrow money because the United States government is doing what's called deficit spending. That means the government is generating money from taxes, but then they're spending more than what they're generating, and so this deficit has to be funded through a loan. Now, a big lender for the United States government is the Federal Reserve Bank, but your bank could, in theory, lend their money to the United States government as well, and this is where the United States government would pay your bank back plus interest, but your bank wants a better rate of return, and so this is where your bank is going to take a look at what interest rate the government is paying, and then they're going to charge you more than that because you are a more risky investment than the United States government. So lending money to the government is called a treasury, and this is where treasuries impact the mortgage rate that you pay. So there's two factors that are going to influence your mortgage rate. Number one is the cost of money, which is the federal funds rate. This is the interest rate set by the Federal Reserve Bank, but number two, which is arguably more important, this is the treasury rate. This is the interest rate that the United States government is paying when people or banks or institutions lend money to the United States government, and when these treasury yields go up, your mortgage rates go up. When treasury yields go down, mortgage rates go down. So by ending quantitative tightening, the Fed is hoping that they're going to lower treasury yields, which will then hopefully lower mortgage rates as well. How? Well, let me explain. If you remember what I said a few minutes ago, quantitative tightening is when the Federal Reserve Bank is selling off assets on their balance sheet. That's how they're trying to reduce the amount of money in our economic system. What that means in practicality is when the Federal Reserve Bank is lending money to the government, in essence, they are buying treasuries. So when the Federal Reserve Bank wants to reduce the amount of money in our economic system, they are selling off these treasuries. Why does that matter? Because if the Federal Reserve Bank is selling treasuries, well, now you've got to think of supply and demand. There are more sellers of treasuries in the market. When there are more sellers of treasuries in the market, the government has to incentivize more buyers of these treasuries with higher interest rates. Because if you want somebody to buy this treasury, you have to incentivize them with a promising and exciting interest rate. But now, if the Federal Reserve Bank is to start quantitative easing, or at least stop quantitative tightening, that means they could potentially start buying more of these treasuries. If the Federal Reserve Bank now becomes a buyer of treasuries, now there's more demand for treasuries. If there's more buyers for treasuries, now the government doesn't have to incentivize people with as high of interest rates because there's more buyers out there. So if more people are buying treasuries, which means the Federal Reserve Bank is now doing quantitative easing, they're printing money, they're buying treasuries, meaning lending money to the government, now the government doesn't need as high of treasury rates. Now, treasury rates start to go down, which then means if your bank were to lend money to the government, they're going to make less interest from the United States government. If they're going to make less interest from the government, that means the bank can lend their money to you for a mortgage for a lower mortgage rate. That's why this ending of quantitative tightening can help reduce mortgage rates, because if the Federal Reserve Bank now becomes a buyer of treasuries, that's going to lower treasury yields, which can then lower mortgage rates. I know it's kind of complicated, but I hope that explanation helps to explain why this can lower mortgage rates. Now, when it comes to what does this mean for our economy going forward, if the Fed is to end quantitative tightening on December 1, well, we can't predict the future, but we can look at history. Because while history doesn't exactly repeat itself, it does rhyme. So let's take a look at what happened that way you can get a general idea of what could be coming and how you can best protect yourself. This is not confirmed, but this is the expected number. While at the same time, the reported inflation rate in the United States between 2022 to 2025 is about 25%. Again, this is the reported number, not the real inflation rate that many people have felt. The general rule of thumb is that the real inflation rate for many people is two times the reported inflation rate. So it might be closer to 50% for a lot of people. So what we've seen over the last five years is that the prices of things have gone up faster than the median income. While at the same time, investments, more specifically, the stock market has gone up by around 90% over that same time period, which means investors got wealthier. The average person who is just relying on their salary became poorer. Now, do we know what's going to happen in 2026? No, I don't have a crystal ball, but I understand that if the Federal Reserve Bank starts to print more money, well, that printing of money can dilute the value of the dollar, which can create more inflation, which would benefit investors over the long term. It doesn't mean the markets are guaranteed to go up in 2026 because we know markets are volatile. I mean, the market crashed in 2020. We saw the stock market fall by 20%. But over the long term, we know the markets generally go up. So the way that you win in this system is by becoming an investor. Again, I have a free investing masterclass for you if you want to learn how you can get started as an investor and find investment opportunities. That link is free down in the description, but it's going to become more important than ever because now we've already seen the impacts of high inflation over the last few years. And if the Federal Reserve Bank now cuts their quantitative tightening, and now they start stimulating through more money, that stimulating through more money is going to benefit some people more than others. Who is that beneficiary? Investors. And this is why it is important for you to understand how our economic system works. That way you can win in this economic system and just understand these are the reasons right now why the Federal Reserve Bank is considering ending the quantitative tightening program. So on December 1st, 2025, the Federal Reserve Bank is scheduled to end quantitative tightening. That means they are going to stop their reducing of their balance sheet. They're going to stop trying to reduce the money in our economic system because they want to, number one, increase credit. That way banks can issue more loans and that way banks have extra cash to continue paying off your deposits and withdrawals if you go and try to pull money out of the bank. Number two, we are seeing a slowing in the job market, especially because of AI. And the Federal Reserve Bank is hoping that if we increase how many dollars are out there, that is going to stimulate more job growth and more job investment to help stimulate the economy and the job market. And number three, because there's been a lot of pressure on the Fed to try to get mortgage rates down. Well, there are two factors that influence mortgage rates. One is the cost of borrowing, which is the interest rate set by the Fed. The Fed has already cut interest multiple times now in 2025. They also cut rates in 2024. But we haven't seen a big reduction in mortgage rates. The other part that influences mortgage rates is the treasury yield. And if the Federal Reserve Bank stops selling treasuries, that can help treasury yields fall, which can help banks sell you a mortgage at a lower mortgage rate as well. Now, what can this mean? Well, what we've seen through the past is when you create more money, in general, wages don't keep up with inflation. Investors become wealthy, which is why you need to become an investor. And this is what you want to be prepared for come 2026 because, well, it looks like we're going to probably see more money printing come 2026. Now, if you got value out of this video, the best thank you is a referral. So if you could, please share this video with a friend, family member, colleague, or fellow investor that we can continue to spread this type of financial education. Thank you. It is getting harder than ever for the average person to get a job and build wealth because traditional entry-level skills are now being automated by AI. But this is the silver lining because for those of you that are go-getters that want to go the extra mile, this shift is going to create more millionaires than ever before. And yes, the things that I'm about to show you will apply whether you work a job or run a business.