Reading the Fed's Balance Sheet
The Buffer That Absorbed Two Trillion
How the Fed shrank its balance sheet by $2.2tn without draining the banking system.
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Between April 2022 and September 2026 the Fed’s assets fell from $8.97tn to $6.74tn — down $2.2tn. Reserves fell far less. Where did the rest of the shrinkage come from?
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