Fed Ends QT with a Balance Sheet 75% Higher than Pre-Covid

The following analysis breaks down the Fed balance sheet in detail. It shows different parts of the balance sheet and how those amounts have changed. It also shows historical interest rate trends.

Breaking Down the Balance Sheet

The Fed has decided to end Quantitative Tightening (QT) on December 1st. In late 2019, the Fed balance sheet got down to $3.75B. It then peaked just below $9T in June 2022 in the wake of Covid. With QT now completing, it will leave the balance sheet at $6.5T. Almost twice as large as pre-Covid and 7x larger than before the Great Financial Crisis.

Anyone wondering why gold has more than doubled over the last 5 years should look no further than the irresponsible Fed, monetizing a large portion of the US debt permanently. The chart below shows the orderly run-off at the Fed and how they have worked to slowly shrink their balance sheet over the last year and a half.