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.