Fed Balance Sheet QT: -$1.60 Trillion from Peak, to $7.36 Trillion, Lowest since December 2020

The Federal Reserve's balance sheet has decreased by $1.60 trillion since the end of its quantitative easing program in April 2022, reaching its lowest level since December 2020 at $7.36 trillion. This reduction includes a significant decrease in Treasury securities and mortgage-backed securities (MBS), which were heavily accumulated during the pandemic. Starting in June, the Fed plans to slow down the pace of quantitative tightening, adjusting the caps for Treasury and MBS runoff to manage the balance sheet reduction more cautiously without destabilizing the financial system.