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Societe General with a glance at the progress of QT and where it will end.
Shrinking the SOMA
The Fed began shrinking its portfolio, i.e. quantitative tightening (QT), in June 2022. At the start, the Fed announced reductions of its Treasury and mortgage-backed securities portfolio, capping the monthly reductions at $35bn of Treasury securities and $17.5bn of mortgage-backed securities.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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