Rates Spark: When the Fed Chair entered a bar
Recent Developments in the Federal Reserve's Balance Sheet
Since the Federal Reserve resumed its program of purchasing Treasury bills, approximately $65 billion has been added to its holdings, bringing the total to nearly $260 billion. During this same timeframe, about $20 billion in mortgage-backed securities have matured and left the balance sheet. The most recent figures also indicate an increase in the Fed’s government bond assets.
Overall, since mid-December 2025, the Fed’s net securities holdings have grown by $55 billion. However, this expansion has been partially balanced by a higher Treasury cash balance, fueled by tax receipts. As a result, bank reserves remain steady at roughly $3 trillion. Notably, conditions in the repo market have stabilized, a development that is likely to please the Fed, given the origins of the recent market volatility.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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