How much progress has been made in quantitative tightening since the Fed started, in June last year, to reduce its reserve holdings of US treasuries and agency mortgage-backed securities? It was on May 4, 2022 that the FOMC announced its plan to reduce the size of the balance sheet. For the June-August 2022 period the program would begin with monthly caps of $30.0 billion in US treasuries and $17.5 billion in agency mortgage-backed securities, then in September rise to $60.0 billion and $35.0 billion, respectively. The FOMC has stuck to this plan since its announcement. Fed Chair Jerome Powell has repeatedly signaled ... (full story)