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  • Fed Balance Sheet QT: -$1.0 Trillion From Peak, to $7.96 Trillion, Lowest Since June 2021. In September Alone -$146 Billion

Fed Balance Sheet QT: -$1.0 Trillion From Peak, to $7.96 Trillion, Lowest Since June 2021. In September Alone -$146 Billion

by Wolf Richter Wolf Street

Dual milestone: down $1 trillion & below $8 trillion. Fed shed 26% of Treasuries it had added during pandemic QE.

This is a big milestone of the Fed’s Quantitative Tightening (QT): Total assets dropped by $1.01 trillion since peak-QE in April 2022, to $7.96 trillion, the lowest since June 2021, according to the Fed’s weekly balance sheet today.

In September alone, total assets dropped by $146 billion as another big chunk of bank-panic support unwound.

Total assets have now dropped 11.3% from the peak.