Major central banks have unwound pandemic-era balance sheet expansion, with Fed assets now at 21% of GDP (down from 37% peak) and other major central banks showing similar de-risking.
Macro & Markets ·
The Federal Reserve's total assets have fallen to 21% of US GDP, their lowest level since the 2020 pandemic began, down from a 37% peak in 2021. The European Central Bank's assets dropped below 40% of Eurozone GDP for the first time since early 2020, retreating from a 65% high in 2022, while the Bank of Japan's balance sheet contracted to approximately 103% of Japanese GDP from a 130% peak in 2021. The Bank of England similarly reduced its assets to 21% of UK GDP, the lowest since 2016 and down from a 40% peak in 2021, reflecting a broad unwinding of pandemic-era monetary stimulus across major central banks.