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Federal Reserves Balance Sheet Increases Four Weeks in a Row

We track the balance sheet on a weekly basis and we see that the recent update for the Feds balance sheet has been released through yesterday. The balance sheet has increased four weeks in a row.

The Federal Reserve has increased its balance sheet by 1000% since 2009. As part of their commitment to fight inflation, they have chosen to raise interest rates and reduce their balance sheet.

Interest rates are still very low compared to historical norms. It feels like there is some hesitation or second guessing when it comes to reducing the balance sheet. There has been no real action in reducing the balance sheet so far and the ECB's balance sheet hit new all time highs this week.

The Federal Reserve continues to lose credibility and the market is starting to call its bluff.

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