QT continues.

in economy •  last year 

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Quantitative Tightening is still ongoing despite what people may say. Here you can see the total assets held by the Fed and the total securities held by the Fed.

The red line went up this month because banks utilized the discount window and BTFP for loans (the Fed also extended credit to the banks in receivership). Those loans appear as assets on the Fed's balance sheet. They'll get repaid by the banks and come off the balance sheet.

The blue line is QT. The Fed is still unwinding the securities it purchased as part of QE. The FOMC last week reiterated that it is still proceeding with QT. The Fed isn't purchasing securities. It is just lending to member banks amidst recent banking pressure.

I saw some analysts even describe the BTFP as quantitative easing by another name, but it isn't even the same program let alone the same name. The BTFP is just essentially a longer term version of the discount window. In both cases these are loans that the banks pay back. They are for liquidity purposes. The Fed isn't indefinitely buying assets like in QE.

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