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MNI Fed Balance Sheet Tracker - Aug 25, 2023


We've just published our latest Fed Balance Sheet Tracker (PDF here):

  • The decline in the Fed’s Balance sheet has continued in steady if unremarkable fashion through August – which will be welcomed by Fed officials following the banking turmoil earlier this year.
  • Emergency facilities, including liquidity/loans to banks, continue to shrink (-$14B in the past month), with the Bank Term Funding Program slowly growing (up $2B in the last month to $107B) but more than offset by falls in “other credit extensions” (representing Fed loans to the FDIC that are being gradually unwound, down -$15B in the past 4 weeks to $137B). Overall these dynamics continue to suggest an unwinding of stress in the banking sector since March.
  • With the SOMA portfolio down $80B in the past 4 weeks to Aug 23 (including $74B Tsys, $2B Bills, $4B MBS) to, and overall holdings down $104B to $8.1T – a fresh post-2021 low. SOMA holdings are down to $7.4T – down nearly $1T since the start of QT in Jun 2022 ($980B), but up $3.4T since QE was launched in March 2020.

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