The Fed’s Balance Sheet Reduction (QT) Update

QT is essentially over. Finally winding down the Overnight Reverse Repo facility will take more liquidity out of the economy than will the Fed’s muted balance sheet effort.

• Treasuries: The Fed’s Treasury holdings were unchanged decreased for the week-ended January 22nd. The Fed’s Treasury holdings declined by $22.7 billion on a rolling 4-week basis.

• Agencies: The Fed’s Government Agency security holdings declined by $3.4 billion for the week-ended January 22nd. The Fed’s Government Agency holdings declined by $15.6 billion on a rolling 4-week basis.

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

Source: TEK2day; Federal Reserve