Federal Reserve Weekly SOMA Update

The Fed is in a holding position while prices continue to rise. Passage of Trump’s deficit-heavy spending bill will only further devalue the Dollar, which is what the Trump Administration wants. Their thought is to inflate nominal prices, thereby inflating tax receipts while debt payments remain fixed. However, the proper approach would be to radically reduce fiscal spending, which would strengthen the Dollar, Pari-passu.

• Treasuries: The Fed’s Treasury holdings decreased by $4.6 billion for the week-ended July 2nd. The Fed’s Treasury holdings decreased by $5.0 billion on a rolling 4-week basis.

• Agencies: The Fed’s Government Agency security holdings were unchanged for the week-ended July 2nd. The Fed’s Government Agency holdings decreased by $17.7 billion on a rolling 4-week basis.

• The Fed’s balance sheet holdings: https://www.newyorkfed.org/markets/soma-holdings

• Our Excel spreadsheet tracks the Fed’s SOMA activity since 2022. It may be accessed below the paywall.

Source: TEK2day; Federal Reserve