Fed Balance Sheet Holds at $6.74 Trillion as Markets Rally
The Federal Reserve's balance sheet stands at approximately $6.74 trillion, down from its pandemic-era peak near $9 trillion, as quantitative tightening continues to drain liquidity from the financial system. This contraction has occurred gradually since 2022 and represents the Fed 's effort to normalize its footprint after years of extraordinary stimulus. Yet markets rallied on September 4, with the S&P 500 ETF (SPY) gaining 1.05% and the Nasdaq-100 ETF (QQQ) up 1.19%, showing investors still find room to bid risk assets higher despite the ongoing liquidity withdrawal.
Key Takeaways Fed total assets at $6.74 trillion, down from roughly $9 trillion at the pandemic peak, per FRED WALCL data as…
Continue reading with Premium
The full macro analysis, with levels, positioning, and what changed, continues below the line.
- checkFull deep-dive reports while they're current: levels, positioning, and conviction scores
- checkWatchlist changes as our analysts make them
- checkExclusive investigative reports
Not ready? Create a free account for extended previews · Already a member? Log in
Secure checkout via Stripe