The US Federal Reserve's balance sheet shrinks below $7 trillion

robot
Abstract generation in progress

The Federal Reserve’s asset reduction is gaining momentum. Recently, the total size of the Fed’s balance sheet dropped below approximately $7 trillion, reaching this level for the first time since August 2020. This indicates a total asset reduction of $2 trillion through quantitative tightening (QT), which is the exact opposite of the quantitative easing (QE) policy implemented over the past few years.

The Fed has officially announced its plan to continue this scale of balance sheet reduction. Specifically, it plans to reduce holdings of U.S. Treasury bonds by $25 billion per month and mortgage-backed securities (MBS) by $35 billion per month. This policy aims to control market liquidity while maintaining a high interest rate environment.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)