📈 Mortgage-Backed Securities Decline Amid Rising Share of Federal Reserve Assets

After a post-pandemic surge, mortgage-backed securities (MBS) holdings doubled between February 2020 and February 2022, while their share of total Federal Reserve assets decreased from 33.0% to 30.4%. Following the start of the quantitative tightening policy in Q2 2022, MBS holdings declined by 16% through Q3 2023, yet their share of Fed assets rose from 30.4% to 32.2%. During quantitative easing (2020–2022), MBS increased by $1,350 billion, but decreased by $430 billion during quantitative tightening (2022–2024).