Federal Reserve Assets (2002–2024): 33 Months of Quantitative Tightening (Q1 2022 – Q4 2024)

In response to the COVID-19 pandemic, the Federal Reserve's balance sheet expanded significantly, growing by 115%, from $4.16 trillion in February 2020 to $8.94 trillion in March 2022. Following this period, as part of quantitative tightening, the Fed's balance sheet contracted by 23.0%, reaching $6.89 trillion by December 2024. During this 33-month tightening phase, the balance sheet was reduced by $2.05 trillion, with treasury securities accounting for a $1.45 trillion decrease (71% of the total reduction) and mortgage-backed securities (MBS) declining by $0.47 trillion (23% of the total reduction). From March 2022 to December 2024, treasury securities fell by 25.2%, while MBS holdings declined by 17.3%.