The good news? The Fed continued to unwind its $4.4 TRILLION balance sheet.
The bad news? The Fed is shrinking it at sloth-like speed.
As an example, the latest SOMA report from the Fed on New York saw a $6 billion decline in the Fed balance sheet. That is only 0.14% per week. At this rate, it will take over 700 weeks (or 13.46 years) to unwind.
This week, Treasury notes and Treasury bonds were the primary driver of the decline. Agency MBS? Not so much.
Yellen’s last presentation.