https://schiffgold.com/exploring-fin...t-to-start-qt/



Did the Fed Forget to Start QT?

JULY 1, 2022 BY SCHIFFGOLD 0 3
The first month of Federal Reserve balance sheet reduction turned out to be a big dud. As it turns out, the balance sheet shrank by less than $1 billion in June during the first month of quantitative tightening.

As part of its vaunted inflation fight, the Fed announced in May that Quantitative Tightening (QT) was set to begin last month. From Reuters:

On June 1, it will start the process at $47.5 billion a month for the first three months, divided as $30 billion of Treasuries and $17.5 billion of MBS. It will increase to the full $95 billion three months later.”

Well, it looks like the Fed was unsuccessful in their first month of QT. Not only did the balance sheet contract by less than $1B, it even increased MBS holdings by $1.9B.