FX.co ★ Fed’s Balance Sheet Edges Lower to $6.74 Trillion, Signaling Ongoing Quantitative Tightening

The U.S. Federal Reserve’s balance sheet has inched down again, underscoring the central bank’s continued effort to withdraw liquidity from the financial system. As of the latest update on 30 July 2026, the Fed’s total assets eased to $6,738 billion, compared with the previous reading of $6,747 billion.

The modest decline highlights the ongoing runoff of the Fed’s asset holdings as maturing securities are allowed to roll off without full reinvestment. While the weekly move is relatively small, the direction remains consistent with the post-crisis trend of quantitative tightening, with investors closely tracking balance sheet changes for signals on longer-term monetary conditions in the United States.