FX.co ★ Fed Trims Balance Sheet by $5 Billion as Runoff Continues

The U.S. Federal Reserve’s balance sheet edged down to $6,743 billion, from a previous level of $6,748 billion, according to data updated on 1 October 2026. The $5 billion decline underscores the central bank’s ongoing effort to gradually reduce the size of its holdings after years of balance sheet expansion.

While the move is modest in scale, the continued runoff reflects the Fed’s commitment to normalizing its financial footprint, a process closely watched by markets for its potential impact on liquidity conditions and financial asset pricing. With the balance sheet still elevated by historical standards, even small week-to-week shifts can influence investors’ expectations about the future path of monetary policy and longer-term interest rates.

Market participants are likely to monitor upcoming releases for signs of whether this gradual pace of reduction will persist or if the Fed will adjust its approach in response to evolving economic data and financial conditions.