Reports claim that the Federal Reserve was “tightening credit” by selling off its massive securities balance sheet, or at least letting it “run off” as those securities matured. In fact, the Fed has added about $100 billion to the securities on its balance sheet, now at $6.69 trillion and heading back up towards $7 trillion. But that is not the primary story.
According to the Federal Reserve’s latest release of Form H4.1, “Factors Affecting Federal Reserve Bank Balances,” the Fed has bought a net $300 billion in securities of all types in the past year, as of July 16, 2026, of which all were Treasury Bills, with maturities of one year or less, and largely used by hedge funds for speculation.
