This is a big milestone of the Fed’s Quantitative Tightening (QT): Total assets dropped by $1.01 trillion since peak-QE in April 2022, to $7.96 trillion, the lowest since June 2021, according to the Fed’s weekly balance sheet today. In September alone, total assets dropped by $146 billion as another big chunk of bank-panic support unwound. Total assets have now dropped 11.3% from the peak. {chart} From crisis to crisis to raging inflation: During QT #1 between November 2017 and August 2019, the Fed’s total assets dropped by $688 billion. During QT #2 so far, which started ramping up in the summer of 2022, the Fed has ... (full story)