The Fed allowed a modest amount of Treasuries and a larger position of Agency securities to run off its balance sheet the week ended March 29th 2023. However, when one considers the Fed’s bail out facility – the Bank Term Funding Program (BTFP) – it is clear we entered a period of Quantitative Easing (QE) several weeks ago.

• Treasuries: The Fed’s Treasury security holdings decreased by $534 million over the last week and decreased by $10.3 billion on a rolling 4-week total basis.
• Agencies: The Fed’s Government Agency security holdings decreased by $10.8 billion over the last week and decreased by $15.6 billion 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.

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