The Federal Reserve will remain the top holder of U.S. Treasuries for the foreseeable future after the central bank said it would stop shrinking its $4 trillion balance sheet by the end of ...

The Federal Reserve Building, Washington D.C. HDR image. getty There is still only one chart you need to see and that’s the Federal Reserve’s Balance sheet trends.

Summary The Fed’s balance sheet shrunk by $118B in May - the largest amount since September of last year. When the Fed makes money, it sends it back to the Treasury.

Total assets on the Federal Reserve’s weekly balance sheet dropped by $82 billion to $8.68 trillion, the lowest since December 8, 2021. Read more on it here.

Today, Treasuries account for just 55 percent of the assets on the Fed's balance sheet. The other big chunk is MBS at about 40 percent. The remainder is a hodge-podge of other assets, including gold.