The Fed continued with its modest tightening program, reducing its Treasury position by approximately $29 billion over the past week and by $72 billion on a rolling 4-week basis. However, the Fed’s Balance Sheet has barely unwound the Fed’s enormous inflation of the money supply (2020-2022) as depicted in the chart below.
- Treasuries: The Fed’s Treasury security holdings decreased by $28.9 billion the week-ended May 17th and were reduced by $72.3 billion on a rolling 4-week basis.
- Agencies: The Fed’s Government Agency security holdings decreased by $1.4 billion over the same period and were reduced by $18.6 billion on a rolling 4-week 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.
You must be logged in to post a comment.