The Fed Drops QT to $5B a Month – Ensuring the Balance Sheet Will Stay Bloated

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 recently announced a further reduction in the balance sheet runoff from $25B a month to $5B a month. The data shows that they have been reducing the pace of runoff but have not yet gotten down to the target $5B a month.