The Fed’s Balance Sheet Reduction (QT) Update

The Fed tightened on the mortgage side the week-ended Feb. 26th. The time for hawkish monetary policy was late 2020, early 2021.

• Treasuries: The Fed’s Treasury holdings increased by $50.0 million for the week-ended February 26th. The Fed’s Treasury holdings declined by $23.3 billion on a rolling 4-week basis.

• Agencies: The Fed’s Government Agency security holdings declined by $14.3 billion for the week-ended February 26th. The Fed’s Government Agency holdings declined by $14.3 billion on a rolling 4-week basis.

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

Source: TEK2day; Federal Reserve