Topics to dicuss developments for the FED QT and QE Decisions, and hence Balance Sheet levels and composition
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As of March 2025, the Federal Reserve’s quantitative tightening (QT) program continues to reduce its balance sheet, though at a moderated pace.
In June 2024, the Fed decreased the monthly runoff caps to $25 billion for U.S. Treasury securities and $35 billion for mortgage-backed securities, down from the previous combined total of $95 billion
- The balance has declined ~ $2.2 T from the peak of $8.9 T to $6.7 T currently.
- Market expectations is for QT to stop at mid 2025
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