Total assets on the Fed’s balance sheet for the week ended August 26, released this afternoon, fell by $20 billion, to $6.99 trillion, after two weeks in a row of increases, which had followed two weeks in a row of declines, which had followed two weeks in a row of increases, which had followed four weeks in a row of declines. Two steps forward, two steps back — the Fed’s new song and dance? With the effect that total assets are now down by $179 billion from their peak on June 10: {chart} So here’s how that happened by the five major QE-related categories on the Fed’s balance sheet: repos, central bank liquidity ... (full story)