The Federal Reserve is shrinking their prodigious balance sheet by baby steps. Like Steve Martin doing Michael Jackson’s Billie Jean.
According to the NY Fed, their securites holdings INCREASED by $1 million from th previous week rather than shrinking it. Not decreased, mind you, but INCREASED.
T-note and T-bond holding remained the same while Agency MBS holdings rose by $1 million.
Way to unwind, Fed!
