📈 Federal Reserve Assets (2002–2025): 35 Months of Quantitative Tightening (Q1 2022 – Feb. 2025)

In response to the COVID-19 pandemic, the Federal Reserve's balance sheet expanded by 115%, rising from $4.16 trillion in February 2020 to $8.94 trillion in March 2022. However, over the next 35 months of quantitative tightening, the Fed reduced its balance sheet by $2.17 trillion (24.3%), bringing it down to $6.77 trillion by February 2025. Treasury securities accounted for 69% of the total reduction, declining by $1.51 trillion (26.2%), while mortgage-backed securities (MBS) fell by $0.51 trillion (18.9%), making up 24% of the total decline.