September 2022: New New York Fed Post – The “How and When” of the Fed’s Balance Sheet Runoff

By Maurice Obstfeld and Haonan Zhou

In May 2022, the Federal Reserve (Fed) announced that the process to reduce the size of its balance sheet would begin on June 1. With that process now underway, this post reviews the initial months of runoff. We also highlight publicly available resources that provide data to monitor the ongoing runoff of the Federal Reserve System Open Market Account (SOMA), which holds the securities acquired through open market operations.