During 2022 and 2023 the Fed reduced its Treasury holdings by $1.0 Trillion – this after the Fed grew its Treasury holdings from $2.4 Trillion to $5.8 Trillion from Q1 2020 – Q1 2022. QT has been laughable in terms of it being a serious response to price inflation. The only question now is when may the Fed end its weak QT effort and pivot from its “Tightening Lite” program of the past year and half?
