AI Data Insight
Latest data shows that as of 2026 Q4 (October 9), the size of U.S. Treasuries held by the Federal Reserve slightly increased to $4.566 trillion, an increase of approximately $2.22 billion from the previous week. This confirms the strategy of short-term Treasury purchases to maintain ample bank system reserves under the leadership of the new Chairman, Kevin Warsh. With U.S. long-term bond yields surging and the fiscal deficit worsening, the Fed's balance sheet movements are becoming an important line of defense against a "debt death spiral."