Federal Reserve Weekly SOMA Update

A slowing economy, elevated prices, elevated yields (which logically ought to move higher), and elevated debt levels mark a return to stagflation. Frankly, we have been in a stagflationary environment in real economic terms since 2022, which is why I wrote this book in 2021.

• Treasuries: The Fed’s Treasury holdings decreased by $3.1 billion for the week-ended May 21st after modestly increasing the past two weeks. The Fed’s Treasury holdings decreased by $5.3 billion on a rolling 4-week basis.

• Agencies: The Fed’s Government Agency security holdings decreased by $3.7 billion the week-ended May 21st. The Fed’s Government Agency holdings decreased by $16.1 billion on a rolling 4-week basis.

• The Fed’s balance sheet holdings: https://www.newyorkfed.org/markets/soma-holdings

• Our Excel spreadsheet that tracks the Fed’s SOMA activity since 2022 may be accessed below the paywall.

Source: TEK2day; Federal Reserve data