Thursday, July 16
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Topic: quantitative-tightening

The Marriner S. Eccles Federal Reserve Board building in Washington
Economy
Thursday, 7/16, 10:31 AM

How the Fed Plans to Shrink Its $6.7 Trillion Balance Sheet

  • The Federal Reserve's balance sheet ballooned to about $9 trillion during the pandemic and now sits near $6.7 trillion.
  • Shrinking it further is a delicate job: pull too much cash out of the banking system and markets seize up, as they did once before.
  • Here is what the balance sheet is, and why the Fed is moving carefully.

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