The Fed’s Balance Sheet Reduction (QT) Update
The Fed resumed its overly modest QT program this week. It is better than zero activity. We’ll take it. We would like to see the Fed rid its balance sheet of the excesses of 2020-2022 over the next several years at a clip of approximately $1.5 Trillion per year.
Treasuries: The Fed’s Treasury security holdings declined by $22.0 billion for the week-ended September 20th and decreased by $46.8 billion on a rolling 4-week basis.
Agencies: The Fed’s Government Agency security holdings declined by $4.4 billion for the week-ended September 20th and decreased by $18.7 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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