Definition
Tightening means a central bank making money harder to come by, mainly by raising rates; easing means making it easier, mainly by cutting them.
The story
Rate hikes and quantitative tightening (QT) are forms of tightening. Rate cuts and quantitative easing (QE) are forms of easing. The Fed's Sep 16, 2026 hike was a tightening move, its first since July 2023.
Why markets watch it
Whether the Fed is tightening or easing sets the backdrop for nearly every market.
Connects to
Rate hike and rate cutQuantitative tighteningQuantitative easingMonetary policyFinancial conditions
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms