On February 13, 2025, the Federal Reserve released its balance sheet for the week as usual.

Only the main projects are listed below:

In terms of asset size, it increased by $2.578 billion this week; The total size of the balance sheet was 6.8135 trillion US dollars, a decrease from last week. Among them, treasury bond assets were $4.26560 trillion and MBS was $2.2176 trillion.

From the perspective of liabilities, the reverse repurchase decreased by $2.946 billion, and the reverse repurchase account size was $452.467 billion.

The fiscal deposits decreased by 8.799 billion US dollars, and the balance of the fiscal deposit account was 809.154 billion US dollars.

These two items decreased by a total of $11.745 billion. That is to say, releasing $11.745 billion in liquidity.

Overall, approximately 14.323 billion US dollars were released in terms of liquidity this week.

This week, the reserve balance reached 3.2554 trillion US dollars, which has rebounded from last week.

On June 2, 2022, the asset size of the Federal Reserve was $8.915 trillion.

On February 13, 2025, the asset size was 6.8135 trillion US dollars, a decrease of 210.15 billion US dollars from early June 2022.

From the perspective of asset side changes, treasury bond assets continue to decrease, with treasury bond assets of USD 5.77 trillion and MBS2.7 trillion on June 1, 2022.

On February 13, 2025, treasury bond assets will be 4.26560 trillion and MBS2.2176 trillion. Compared with the beginning of June 2022, treasury bond assets decreased by about $1504 billion, and the scale of MBS decreased by about $482.4 billion.

On Thursday (February 13th), the January PPI data in the United States remained high, while the previous day's data showed that the CPI rose more than expected at the beginning of the year. After the release of PPI, there was little change in short-term interest rate futures in the United States, and the market still generally expects the Federal Reserve to maintain policy rates unchanged until September.

According to data released by the US Department of Labor, the Producer Price Index (PPI) in January increased by 0.4% month on month and 3.5% year-on-year, higher than market expectations of 0.2% and 3.2%.

This data indicates that inflation remains at a high level before entering the consumer end, which exacerbates the resistance for the Federal Reserve to cut interest rates in 2025.

The day before the release of PPI data, the Consumer Price Index (CPI) released by the US Department of Labor showed a year-on-year increase of 3.0% in January, further rising from 2.9% in December last year, indicating that the trend of slowing inflation has been reversed.

The Federal Reserve believed that inflation had been effectively controlled by the end of 2024, and therefore cut interest rates three times in the last four months of 2024. But the latest data shows that the downward trend of inflation has stalled, and the year-on-year increase in CPI has continued to rise in the past four months.

In December 2024, the Federal Reserve hinted that it would cut interest rates twice in 2025, but currently, this expectation may not be realized. The latest bets from Wall Street investors indicate that the market currently only expects a possible interest rate cut once in 2025, and it may not happen until October at the earliest.

Please pay close attention to this official account's weekly tracking of changes in the Federal Reserve's balance sheet.