Major central banks are shrinking their balance sheets at a record pace: The Fed, the European Central Bank, the Bank of Japan, and the Bank of England have reduced their asset holdings by an average of ~110 billion/mo over the last 6 months. They have maintained this pace of reduction over the last 2 years. By comparison, in 2019, the speed of decline was ~30 billion, or almost 4 times slower, and only the Fed and ECB were conducting QT. Currently, the ECB is reducing assets by ~60 billion, the Fed by ~35 billion, the BoJ by 10 billion, and the BoE by ~5 billion per month on average. In the past, when a significant amount of liquidity was withdrawn, markets saw heightened volatility. Is market volatility set to return?