Rates Spark: When the Fed Chair entered a bar

Recent Developments in the Federal Reserve's Balance Sheet

Since the Federal Reserve resumed its program of purchasing Treasury bills, approximately $65 billion has been added to its holdings, bringing the total to nearly $260 billion. During this same timeframe, about $20 billion in mortgage-backed securities have matured and left the balance sheet. The most recent figures also indicate an increase in the Fed’s government bond assets.

Overall, since mid-December 2025, the Fed’s net securities holdings have grown by $55 billion. However, this expansion has been partially balanced by a higher Treasury cash balance, fueled by tax receipts. As a result, bank reserves remain steady at roughly $3 trillion. Notably, conditions in the repo market have stabilized, a development that is likely to please the Fed, given the origins of the recent market volatility.