For all intents and purposes, QT is dead and buried. Yes, the size of the Fed’s Treasury holdings will continue to shrink for some time to come, but at a rate of just $5bln per month, the pace of this will be more glacial than breakneck, especially when at one stage the Fed were letting as much as $60bln in Treasuries roll off the balance sheet every month. {chart} That meagre pace, though, is important, from an ‘optics’ perspective if nothing else. Firstly, it allows the Committee to maintain the narrative that balance sheet normalisation is continuing, even if in practice the rate of said normalisation is so slow ... (full story)