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.

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T-note and T-bond holding remained the same while Agency MBS holdings rose by $1 million.

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Way to unwind, Fed!

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