The Fed’s Balance Sheet Reduction (QT) Update
The Fed maintained the modest pace of its QT program. Our view is that flexing the money supply is the best way to guide the economy, never growing or shrinking the money supply by more than 1-2% in any given year. The Fed is about to take rates down to zero (by 2025) as it works with Treasury to reinflate the U.S. Economy in an effort to inflate the $35 Trillion debt load away.
Treasuries: The Fed’s Treasury security holdings decreased by $12.1 billion for the week-ended July 17th and declined by $28.0 billion on a rolling 4-week basis.
Agencies: The Fed’s Government Agency security holdings declined by $64.7 million for the week-ended July 17th and declined by $18.7 billion on a rolling 4-week basis.
The Fed’s balance sheet holdings: https://www.newyorkfed.org/markets/soma-holdings
Excel file: Our Excel file detailing the Fed’s holdings of Treasury and Agency securities: HERE.
