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  • Fed Balance Sheet QT: -$91 Billion in July, -$759 Billion From Peak, Biggest Drop Ever, to $8.2 Trillion, Lowest Since July 2021

Fed Balance Sheet QT: -$91 Billion in July, -$759 Billion From Peak, Biggest Drop Ever, to $8.2 Trillion, Lowest Since July 2021

August 04, 2023

by Wolf Richter Wolf Street

The Fed has now shed 22.3% of the Treasury securities it bought during pandemic QE.

Quantitative Tightening (QT) continues. The Fed’s total assets dropped by $91 billion in July, and by $759 billion since the all-time peak in April 2022, the biggest drop ever, to $8.21 trillion, according to the Fed’s weekly balance sheet today.

Since the height of the bank panic in March, the Fed has shed $527 billion in assets, as QT continued on track and as bank liquidity support measures are unwound.