The Federal Reserve has only done a tiny amount of Quantitative Tightening so far

You'd think, judging from market tantrums and hysterics, that the Federal Reserve has been brutal in their Quantitative Tightening.

They've reversed QE by $206 billion according to their latest report:

https://www.federalreserve.gov/releases/h41/

That sounds like a lot. But it's not when you realize they've done QE to the tune of $9 trillion in the last 15 years.

Unbelievably they didn't stop QE till March 2022.

So the gentle Quantitative Tightening they've been doing since June 2022 has only taken their assets back to where they were in December 2021.

Their efforts have only managed to reverse the mistakes of the first three months of the year. No wonder inflation is still raging.

To get to where they were before the pandemic, they need to shed another $4.3 trillion assets. Brace yourself for a bumpy ride.