AI Data Insight
As of the third quarter of 2026 (August 7), the size of U.S. Treasuries held by the Federal Reserve rose to $4,529.9 billion, continuing to increase from the previous value of $4,519.6 billion. This indicates that the Fed has transitioned from aggressive quantitative tightening (QT) to a reserve management phase, stabilizing market liquidity by increasing its holdings of short-term Treasury bills. Although the new Chairman, Kevin Warsh, intends to shrink the balance sheet in the long term, maintaining the smooth functioning of money market plumbing remains the top priority of official policy in the short to medium term.