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The Fed’s Liabilities: QT Pushed Down Reserves & RRPs by $865 Billion. TGA Gets Refilled. Currency in Circulation Hits Record
Quantitative Tightening drew down two big liabilities on the Federal Reserve’s balance sheet: Reserves and RRPs dropped by a combined $865 billion from the peak. At the same time, the other two big liabilities on the Fed’s balance sheet went into the opposite direction: the government’s checking account (TGA) and currency in circulation rose. And so total liabilities dropped by $669 billion from the peak, to $8.25 trillion, according to the Fed’s weekly balance sheet released Thursday afternoon. We often discuss the Fed’s assets, such as Treasury securities, MBS, and banking panic loans. Today we’ll take ... (full story)