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- Fed Balance Sheet QT: -$105 Billion in August, -$864 Billion From Peak, to $8.1 Trillion, Lowest Since July 2021
Fed Balance Sheet QT: -$105 Billion in August, -$864 Billion From Peak, to $8.1 Trillion, Lowest Since July 2021
by Wolf Richter Wolf Street
It shed 24% of the Treasury securities it had added during pandemic QE, footprint in ballooning Treasury market shrinks.
The Fed’s Quantitative Tightening (QT) and the liquidity unwind from the bank bailouts in March continued: Total assets dropped by $105 billion in August, and by $864 billion since peak-QE in April 2022, to $8.10 trillion, the lowest since July 2021, according to the Fed’s weekly balance sheet today.
At this pace, the Fed’s total assets will fall below $8 trillion in October.
Since the bank panic in March, the Fed has reduced its assets by $632 billion, as QT continued unperturbed on the same track as before the panic, and as the bank liquidity support measures got unwound.