The Fed’s Balance Sheet Reduction (QT) Update

The Fed had a fairly aggressive week in terms of paring Treasuries from its balance sheet after taking the previous week off. For the second time in three weeks the Fed reduced its Treasury holdings by double-digit $Billions whereas its Agency security position was unchanged. Thus, while the Fed may be done lifting rates, it continues to shrink the money supply. The U.S. economy will not grow so long as the money supply shrinks. It's simple math.