Fed Balance Sheet Grows Again as Treasuries Surge

The Federal Reserve's balance sheet rose to $6.75 trillion in the week ended November 4, its highest level since mid-March 2025, according to the Fed's H.4.1 release. Since the December 2025 low, total assets are up $212 billion, but the composition has flipped: Treasury holdings ($TLT) climbed $390 billion to $4.58 trillion, the highest since March 2024, while mortgage-backed securities holdings fell $170 billion to $1.88 trillion, the lowest since June 2020. The central bank is rebuilding reserves through Treasuries even as it keeps letting its MBS book run off.