But since inflation hit its highest level in a generation last year, central banks have embarked on the quest — unprecedented in scale — of shrinking their bloated balance sheets by selling securities or letting them mature and disappear from their books. “Quantitative tightening,” or QT, by top central banks will suck $2 trillion in liquidity out of the financial system over the next two years, according to a recent analysis by Fitch Ratings. … Ultimately, “there’s a lot of uncertainty” as a period of “very easy money” ends and a new chapter begins, according to Gary Richardson, an economics professor at the University of California, Irvine.

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