Quantitative tightening

Quantitative tightening is when a country's central bank (like the Federal Reserve in the United States) decides to make it harder to borrow money by reducing the amount of money in the economy. This is done by the central bank taking money out of circulation, either by not creating new money, or by buying back some of the existing money. When the money supply is reduced, it becomes harder for people and businesses to borrow money, so interest rates tend to go up. This encourages people to save money instead of spending it and can help to slow down the economy, which can help prevent inflation.