The Fed’s Balance Sheet Reduction (QT) Update

The Fed got back to work this week, trimming its Treasury holdings by $20 billion. I would like to see the Fed get its balance sheet back down to the $5 Trillion range in one year.

• Treasuries: The Fed’s Treasury security holdings declined by $19.9 billion for the week-ended October 2nd. The Fed’s Treasury holdings declined by $24.9 billion on a rolling 4-week basis.

• Agencies: The Fed’s Government Agency security holdings were unchanged for the week-ended October 2nd and declined by $17.7 billion on a rolling 4-week basis.

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