Federal Reserve's Balance Sheet Shrinks by $1.2 Trillion in a Year

According to BlockBeats, data from the Federal Reserve's official website shows that as of March 5th, the size of the Fed's balance sheet has decreased to $7.538 trillion, shrinking by $1.2 trillion over the past year. In March 2020, the US financial regulatory authority announced the closure of Silicon Valley Bank, leading to a crisis in the US banking industry. The Federal Reserve expanded its balance sheet for three consecutive weeks to save the market, reaching a peak of $8.733 trillion on March 21, 2023, the highest level in the past year. The closure of Silicon Valley Bank marked a turning point in the US banking industry, prompting the Federal Reserve to take action to stabilize the market. The reduction in the balance sheet over the past year indicates a shift in the Fed's approach, as it moves towards a more cautious stance in managing its assets and liabilities. This change in strategy is likely to have implications for the broader financial market, as the Fed's actions play a significant role in shaping the economic landscape.