🏦🇺🇸Fed’s Balance Sheet Should Stop Shrinking Soon: Cable FX Macro

• The size of the Fed’s balance sheet has shrunk by about 14% over this cycle, the reduction started last year and has taken net total assets to around $7.7 trillion

• Historically, Fed’s total assets have been reduced by about this amount. This could be interpreted as little room for further reductions

• Expectations of a halt in the reduction of the Fed’s balance sheet could have been among the factors behind the sharp rally in risk assets