FOMC Minutes Released April 6 2022

We pull total Fed assets data from the FRED database. Then, starting with assets as of March 2022, we lower these assets by $95 billion per month for the next two years. This gives us $6.7 trillion in Fed assets by April 2024.

A log chart will provide some perspective on the recent increase in Fed assets relative to earlier increases, such as after 2008.

Will the assets reduction cause a stock market decline? The ratio of fed assets (in billions) to S&P value in 2017 was about 1.8. Keeping this constant would give us an S&P 500 value of 3751.