Federal Reserve balance sheet rises to $6.7 trillion as money supply expands

The Federal Reserve’s total assets increased by $11 billion in the week ending June 17, bringing the balance sheet to $6.74 trillion, the highest level since March 2025. Treasury holdings grew to $4.49 trillion while mortgage‑backed‑securities holdings fell to $1.96 trillion, leaving the balance sheet about 76 % above pre‑pandemic levels.

Despite the Fed’s own balance‑sheet reduction from a $9 trillion peak to roughly $6.7 trillion by mid‑2026, the broader U.S. money supply (M2) kept expanding, reaching a record above $22.8 trillion by February 2026. The June 2026 FOMC statement kept the federal funds rate target at 3.5 %–3.75 % with no immediate plans for further balance‑sheet cuts. Crypto investors view the continued fiat‑currency expansion as a factor increasing interest in Bitcoin as a hedge against inflation.

These developments highlight the ongoing divergence between the Fed’s monetary‑policy actions and the overall liquidity in the economy.