BREAKING: The Federal Reserve’s balance sheet fell by -39 billion in August, to 6.60 trillion, the lowest since April 2020. Since the April 2022 peak, the Fed has reduced its assets by -2.36 trillion, or -26.4%. This unwinds 49.2% of the +4.81 trillion in pandemic-era balance sheet expansion. As a share of GDP, the Fed’s assets hit 21.8%, the least since Q1 2020 and in-line with 2013 levels. However, the central bank’s total assets remain at 2.45 trillion, or +59%, above pre-pandemic levels. The Fed is still far from fully unwinding pandemic-era stimulus.(The Kobeissi Letter)