WASHINGTON, (Reuters) – The Fed’s Treasury bonds and mortgage-backed securities holdings are expected to fall by approximately $2.5 trillion between mid-2025 and $5.9 trillion. This is when central banks’ run-off of assets will likely be halted in order to keep adequate bank reserves.

According to the Fed, New York Fed, it expects that its balance sheet will remain at the same level for at least one year at approximately 22% of GDP. Then, it will grow in line with the economy. According to the New York Fed, its June balance sheet will shrink to reflect its tightening monetary policy. Monthly declines are likely to reach $80 billion through 2024.