Will Trump’s Fed Bring Back QE?

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

In March, the Fed 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. The reductions have fallen, but so have the additions.

Figure: 1 Monthly Change by Instrument