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Fed’s Balance Sheet Plunges $171 Billion in Five Weeks Since Peak Bank Bailout as QT Continues and Liquidity Support Cools

April 28, 2023

by Wolf Richter Wolf Street

First Republic, is this you?

The Federal Reserve’s balance sheet, released today, dropped another $30 billion for the week, to $8.56 trillion, bringing the plunge in the five weeks since peak bank bailout to $171 billion, as quantitative tightening (QT) continued at the normal pace and liquidity support shifts and unwinds, though First Republic seems to be sucking hard on the Fed’s teat.