BREAKING: The Federal Reserve’s balance sheet declined by -13 billion in June, to 6.66 trillion, the lowest since April 2020. Over the last 3 years, the Fed has reduced its asset holdings by -2.31 trillion, or -26%. During this period, the value of Treasury holdings has dropped by -1.56 trillion, to 4.21 trillion, the lowest since June 2020. Mortgage-backed securities (MBS) have fallen -590 billion, to 2.14 trillion, the lowest since March 2021. Despite the reduction, the size of the central bank’s balance sheet remains +2.5 trillion, or +60%, above its pre-pandemic levels. We are still far from undoing pandemic-era stimulus.