The Fed made their final rate hike to 5.33% in August of 2023. Since then, they have made a total of 5 cuts bringing rates down to 3.88% as of this week ⚫️
Over this same time period the Fed has rolled off $890B of Treasuries from its balance sheet through QT 🔴 - an 18% decrease from $5.1T in 2023
Meanwhile, the 25 Largest Domestic Banks have managed to add $473B of new Treasuries onto their balance sheets 🟢 - a 42% increase from $1.1T in 2023🤨
Kinda like Hitler juggled the notes until they became due. Then he had to plunder the neighbors to pay the bill.
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