The Federal Reserve spent years flooding the financial system with cash. Now it’s vacuuming that cash back up, and the banking sector is starting to feel the suction.
Jill Cetina, executive professor of finance at Texas A&M University and former associate managing director of US bank ratings at Moody’s, has been sounding alarms about how quantitative tightening is reshaping the risk landscape for banks. Her core argument: the shift from QE abundance to QT contraction isn’t just a monetary policy footnote. It’s a structural transformation that could stress bank funding, tighten credit conditions, and send shockwaves into every corner of risk assets, crypto included.
