By How Much Can the Fed Reduce its Assets with QT? Fed’s Liabilities set a Floor

Normally when we look at the Fed’s balance sheet, we discuss its assets: Treasury securities, MBS, repurchase agreements (repos), swaps, SPVs, etc. Under the new regime of Quantitative Tightening (QT), total assets have dropped by $139 billion from the peak, as of its balance sheet released on September 1.