When does the FED stop the quantitative tightening? The little I have scanned it has not stopped yet.
If the FED sells bonds into a bear market they create a deeper pullback in the economy.
Google AI
The Federal Reserve (Fed) currently holds approximately $4.7 trillion in U.S. Treasury securities. This represents roughly 25% of the total Treasury securities outstanding. The Fed’s holdings have been decreasing since 2022 as part of a “quantitative tightening” policy.
Woops
The FED buying the curve keeps rates higher but the other factors will rock the boat.
The Fed has a long way to go before its bloated asset sheet returns to normal. Take a look at the pre-Great Financial Crisis normal that lasted since the foundation of the Fed.
Wendy
Dear Wendy,
We are entering a great depression. There will not be much more progress made on this front.
After three years they are about halfway back to where they were 10 years ago. Of course, that should also be adjusted by a third to account for inflation, which puts the balance sheet back where it was from 2014-18.
DB2