The Fed’s Balance Sheet Reduction (QT) Update
The Fed’s SOMA holdings were unchanged the week-ended April 10th. The Fed’s QT program has culled $1.6 Trillion in Treasury and Agency securities from its Balance Sheet since QT’s inception. Compare that to the Fed’s QE buying of $120 Billion per month in the 2020-2022 COVID-response period when Jerome Powell got fast and loose with the people’s money, growing the Fed’s Balance Sheet from $4.2 Trillion to $9.0 Trillion (March 2020 - March 2022). The Fed is not running a tightening program, it is running a tightening propaganda program. QT is the lever that the Fed should utilize. Instead, the Fed chooses to use QT with kid gloves.
Treasuries: The Fed’s Treasury security holdings were unchanged for the week-ended April 10th and declined by $55.5 billion on a rolling 4-week basis.
Agencies: The Fed’s Government Agency security holdings were unchanged for the week-ended April 10th and declined by $14.8 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.
