Fed Reduces Balance Sheet by $15.7 B

The Federal Reserve reduced its balance sheet by $15.7 billion, $17.9 billion was treasuries.

This reduction leaves $36 billion to be reduced in July out of a planned total of $40 billion.

The correlation between the Fed balance sheet and the S&P 500 has broken down since May. If the correlation resumes, the S&P 500 Index is 5 percent overvalued.