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<h2 id="quick-take">Quick Take</h2> 
The Federal Reserve’s balance sheet of total assets has seen a reduction of an additional $75 billion in the past week, with total assets now slightly surpassing the 8 trillion mark. For context, prior to the COVID-19 pandemic, the Fed’s balance sheet was approximately $3.5 trillion. 
Despite the considerable distance yet to be covered, substantial efforts have been made to reduce the balance sheet via quantitative tightening, achieving a reduction of about 5.5% year to date. 
It is interesting, however, to juxtapose this with other leading global central banks. The Bank of England (BOE) has surpassed the Fed’s reduction rate with a 6.5% decrease, the People’s Bank of China (PBoC) at 7.5%, and both the Bank of Japan (BOJ) and the European Central Bank (ECB) have outpaced with reductions exceeding 10%. 
This continuation of quantitative tightening will put further pressure on bond yields, with the U.S. 10-year treasury yield rising to 4.5%. 
This data underscores the concerted global effort by central banks to rebalance their respective financial territories, navigating the delicate path of recovery in the post-pandemic world. 
<figure id="attachment_359656" aria-describedby="caption-attachment-359656" style="width: 100%" class="wp-caption aligncenter"> 
 <img class="wp-image-359656 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/09/walc.png" alt="Fed Balance Sheet: (Source: FRED)" width="1315" height="435" srcset="https://cryptoslate.com/wp-content/uploads/2023/09/walc.png 1315w, https://cryptoslate.com/wp-content/uploads/2023/09/walc-300x99.png 300w, https://cryptoslate.com/wp-content/uploads/2023/09/walc-1024x339.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/09/walc-768x254.png 768w" sizes="(max-width: 1315px) 100vw, 1315px"> 
 <figcaption id="caption-attachment-359656" class="wp-caption-text">
 Fed Balance Sheet: (Source: FRED) 
 </figcaption> 
</figure> 
The post <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com/insights/federal-reserve-trails-global-counterparts-in-balance-sheet-reductions-data-reveals/">Federal Reserve trails global counterparts in balance sheet reductions, data reveals</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Federal Reserve trails global counterparts in balance sheet reductions, data reveals

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