The Fed reduced its Treasury and Government Agency security holdings by $4.8 billion over the week-ended November 23rd – essentially no change. The Fed has reduced its balance sheet holdings by $80.7 billion over the last 4 weeks as it modestly tightens monetary policy by shrinking the money supply (QT) and raising its Fed Funds Rate. Rates are still negative in real terms. Monetary policy remains accommodative despite the media rhetoric about the Fed being hawkish. The Fed can’t spell the word “Hawk”.
- Fed Balance Sheet – Treasuries: The Fed’s Treasury security holdings were unchanged over the past week and $74.2 billion lower on a rolling 4-week total basis.
- Fed Balance Sheet – Agencies: The Fed’s Government Agency security holdings were $4.8 billion lower over the past week and $6.4 billion lower on a rolling 4-week total basis.
- The Fed’s balance sheet holdings: https://www.newyorkfed.org/markets/soma-holdings
- Excel file: Our Excel file detailing the Fed’s holdings of Treasury and Agency securities: HERE.