Fed Ends QT & Cuts 25 bps: How to Position After the Rally

Remove the headwind, not the brakes.

Hey investors, as of October 30, 2025, the Federal Reserve has just made headlines with its latest policy decision from the October 28-29 FOMC meeting. They dropped a 25 basis point rate cut, bringing the target range for the federal funds rate to 3.75%-4.00%.

On the surface, this looks like a cautious trim in response to sticky inflation and a cooling job market. But if you dig a little deeper, it’s clear the Fed is shifting gears—prioritizing economic stability over the aggressive tightening we’ve seen in recent years.

The big shift is the Fed’s plan to stop shrinking its $6.6 trillion balance sheet starting December 1 — putting an end to the liquidity drain that’s been in place for over three years.

For investors like you, this could signal smoother sailing ahead for markets, but it also calls for strategic adjustments to your portfolio. In this in-depth blog post, we’ll break it all down , while weaving in historical context, practical implications, and actionable strategies. Understanding this move could help you navigate what’s next.

Let’s dive in.