AFMC - Fed Balance Sheet QT: -$1.60 Trillion From Peak To $7.36 Trillion Lowest Since December 2020
2024-05-03 08:20:00 ET
Summary
- Total assets on the Fed’s balance sheet fell by $77 billion in April, to $7.36 trillion, the lowest since December 2020, according to the Fed’s weekly balance sheet yesterday.
- In May, the Fed will shed another $75 billion or so in assets, which will bring the balance sheet down to roughly $7.28 trillion. In June, the slower QT sets in.
- Without acceleration of the MBS roll-off, the balance sheet would be down to about $6.63 trillion by the end of May 2025.
Quantitative Tightening has removed 38% of Treasury securities and 27% of MBS that pandemic QE had added. ...
Fed Balance Sheet QT: -$1.60 Trillion From Peak To $7.36 Trillion, Lowest Since December 2020