QT not quite “paint drying,” but having little impact so far -research

The move by major central banks to reduce their asset holdings, begun in 2022 as part of their inflation fight, has had only a modest impact on interest rates and negligible influence on a broad set of other financial indicators, according to new research analyzing the effort's impact. The direct effect of "quantitative tightening" efforts on government bond yields in the seven markets under study, including the U.S. and the euro area, was estimated overall at from 4 to 8 basis points for securities maturing a year or more in the future. In the U.S. it was "close to zero" because of the Federal Reserve's "drip feed" of information that allowed markets to adjust over time.