The Fed Started To Ease in Q4 2023

The pace of the Fed’s QT program started to ease in Q4 2023 as shown in our chart below.

• The 4-week rolling total ending the week of 08/16/2024 was ($98.7) billion (meaning the Fed pared its balance sheet by $98.7 billion). This was the last “large” figure posted by the Fed (the 4-week rolling totals capture the total SOMA changes to the Fed’s balance sheet for the preceding 4 weeks. We publish this figure on a weekly basis but have not previously charted the 4-week rolling totals.)

• You can see that the trend line moves up and to the right for the area circled in gold. This means the Fed pared its balance sheet less aggressively as time passed. The easing began in Q4 2023, which was around the time that Powell took a dovish turn at the Fed’s 12/13/2023 FOMC meeting.

Source: Federal Reserve; TEK2day

• Premium members may view our Excel spreadsheet complete with the above chart below the paywall.