Quietly behind the scenes, the FOMC – Federal Open Market Committee led by Jerome Powell has slowly but surely taken the Feds balance sheet down by almost $2 Trillion Dollars… see charts… and completed their stated lowered amount goal, thereby completing QT/Quantitative Tightening/Run off of their holdings via maturity!
What does this mean?
The FOMC is no longer taking money out of the system via maturity expiration
Purchase pressure by the Capital Markets is lower due to the prior point
All other things equal, which they never are, lower rates would be a natural progression
Again, all things equal, which they are rarely, higher economic growth (this could counter lower long term rates!)
Have a Great “Hat Tip FOMC for a job well done” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
