Quantitative Tightening (QT) continues. The Fed’s total assets dropped by $91 billion in July, and by $759 billion since the all-time peak in April 2022, the biggest drop ever, to $8.21 trillion, according to the Fed’s weekly balance sheet today. Since the height of the bank panic in March, the Fed has shed $527 billion in assets, as QT continued on track and as bank liquidity support measures are unwind. The chart shows the details of the banking crisis, and how it is being unwound. The next chart down shows the long view: {chart} From crisis to crisis to raging inflation: During the nearly two years of QT #1 ... (full story)