TechFlow, May 11 — According to The Kobeissi Letter analysis, the Federal Reserve's balance sheet decreased by $17 billion last month to $6.7 trillion, the lowest level since April 2020. Since April 2022, the Fed has reduced its balance sheet by $2.3 trillion, a 25% decline, representing approximately 48% of the $4.8 trillion in assets purchased during the post-pandemic response period. The Fed currently holds $4.2 trillion in Treasury securities and $2.2 trillion in mortgage-backed securities (MBS). In March, the Fed announced it would slow the pace of quantitative tightening (QT) from an average of $60 billion per month to $40 billion per month, indicating a deceleration in the reduction of its balance sheet.
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