Where Data Tells the Story
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From 2022 to 2024, the Federal Reserve's quantitative tightening led to the steepest balance sheet contraction since the early 1960s. Over 30 consecutive months, from Q1 2022 to Q3 2024, the balance sheet shrank by 20.8%, dropping from $8.94 trillion to $7.08 trillion. By comparison, during the previous round of quantitative tightening, which ended in August 2019, the balance sheet contracted by 16.4%.