The Fed’s Treasury holdings were unchanged the week ended April 26th. The Fed reduced its Agency holdings by $17 billion over the same period. The Fed’s QT effort has been underwhelming in our view. Too bad, as shrinking the money supply through the Fed’s balance sheet is a more effective tightening tool than is manipulating the Fed Funds Rate.

• Treasuries: The Fed’s Treasury security holdings were unchanged the week ended April 26th. The Fed’s Treasury security holdings have decreased by $63.8 billion on a rolling 4-week total basis.
• Agencies: The Fed’s Government Agency security holdings decreased by $17.3 billion the week ended April 26th and decreased by $18.7 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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