The Fed's total assets as a % of nominal GDP have fallen to 21.6%, the lowest since Q4 2020.



This also matches the level seen in Q3 2013 during the Fed's 3rd QE program.

The Fed now has the lowest

Asset-to-GDP ratio among major central banks, behind the UK's ~25%, the Euro Area's ~40%, and Japan's ~110%.

Since the 2022 peak, this ratio has fallen -14 points, marking the largest drop on record.

In nominal terms, total assets have declined by -$2.37 trillion during this period, to $6.60 trillion, the lowest since April 2020.

The Fed's balance sheet is shrinking.
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