Oct 2, 2024
📈 Federal Reserve Assets: 30 Months of Quantitative Tightening (Q1 2022 – Q3 2024)
In response to the COVID-19 pandemic, the Federal Reserve's balance sheet expanded significantly, growing by 115%, from $4.159 trillion in February 2020 to $8.937 trillion in March 2022. Following this period, as part of quantitative tightening, the Fed's balance sheet contracted by 20.8%, reaching $7.080 trillion by September 2024. During this 30-month tightening phase, the balance sheet was reduced by $1.857 trillion, with treasury securities accounting for a $1.376 trillion decrease (74% of the total reduction) and mortgage-backed securities (MBS) declining by $433 billion (23% of the total reduction). From March 2022 to September 2024, treasury securities fell by 23.9%, while MBS holdings declined by 16.0%.