Fed is Adding $20B a Month to the Balance Sheet

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

As soon as the Fed ended Quantitative Tightening, they launched a new round of Quantitative Easing. As shown in the chart below, the Fed has added $60B in assets over the last 3 months. Ignoring the Reverse Repos shows that the Fed is consistently adding about $20B a month in assets. The Fed promised this would be focused in short-term debt and so far, they have stuck to that promise (see light blue bars).

Figure: 1 Monthly Change by Instrument