2 Comments
User's avatar
⭠ Return to thread
Rza's avatar

QT hasn't even begun though has it. Balance sheet still grows they are just buying at a less furious pace. Only reinvesting proceeds no "new" purchases.

I don't believe we are in QT until we actually reverse and start shrinking. This is currently just less QE.

Expand full comment
MrDustan's avatar

QT has started, you can see it in the Fed's SOMA account, its net shrinking since end of June / beginning of July each month: https://www.newyorkfed.org/markets/soma-holdings

Expand full comment