The Fed’s Balance Sheet Reduction (QT) Update

The Fed is likely done hiking its Fed Funds rate. However, the Fed ramped up its QT effort, purging its Balance Sheet of $40 billion of Treasuries this week, the most since it reduced its Treasury holdings by $43 billion the week-ended August 16th 2023.

• Treasuries: The Fed’s Treasury security holdings declined by $40.0 billion for the week-ended November 1st and declined by $59.7 billion on a rolling 4-week basis.

• Agencies: The Fed’s Government Agency security holdings were unchanged for the week-ended November 1st and declined by $16.8 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.

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