The Fed picked up the QT pace this week as elevated prices are stickier than the Fed believed they would be. The Fed took its balance sheet from $4 Trillion to $9 Trillion over two years (Mar 2020 - Mar 2022). Inflating the money supply to such a degree was of course going to take years - perhaps a decade or more - to correct itself.
Treasuries: The Fed’s Treasury security holdings declined $35.0 billion for the week-ended April 17th and declined by $81.5 billion on a rolling 4-week basis.
Agencies: The Fed’s Government Agency security holdings declined by $195 million the week-ended April 17th and declined by $11.8 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.
