ACTV - Federal Reserve Watch: Moving Forward

2024-02-25 06:42:20 ET

Summary

• The Federal Reserve has reduced its securities portfolio in February by $34.2 billion, bringing the total reduction to $1,412.5 billion since March 2022.
• The Federal Reserve is still concerned about taking too much money out of the banking system too fast and continues to keep commercial banks well-stocked with money.
• The Federal Reserve remains on a good path with plenty of room for the economy to continue to grow, unemployment to remain low, and stock prices to continue to rise.

The Federal Reserve reduced its securities portfolio by $34.2 billion between January 31, 2024, and February 21, 2024, and this brought the total reduction up to $1,412.5 billion since March 16, 2022, the time the Fed began its current policy stance of quantitative tightening. Note: all data related to the balance sheet of the Federal Reserve comes from the Fed's H.4.1 statistical release Factors Affecting Reserve Balances of Depository Institutions....

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