Here’s the latest chart of the Federal Reserve Balance sheet. As you can see, with the exception of the March 2023 bank bailout, QT has been clicking along at a steady pace. The Fed is back to where it was in February 2021, a full 38 months ago. Not bad!
That is, until you see the bigger picture. I know it sounds like science fiction now, but at the start of this chart, around 2008, the balance was about $0………..which is precisely where it belongs.
