Fed Balance Sheet Contracts $9 B, All MBS

The Fed's balance sheet contracted by $9 billion in the week ended June 20. It was all MBS, treasuries rose a $0.1 billion.

The S&P 500 Index lost 8 points for the week ended June 20.

The Fed has $22 billion in reductions to go this month. It hasn't reduced any treasuries this month (the reduction that is in the June 6 report came on May 31). June 30 is another big date for maturing treasuries, I expect all of that reduction ($19.9 billion by my count) will fall in the week ending July 4 report.

Below are the weekly change in the Fed balance sheet and S&P 500, along with the change in both indexed to December 27, 2017 (last Wednesday of the year).

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