The U.S. Federal Reserve continued to pare back its balance sheet, with total assets slipping to $6,613 billion, down from $6,622 billion previously, according to data updated on 19 February 2026.
The modest decline underscores the Fed’s ongoing effort to gradually reduce the size of its portfolio after years of expansion. While the change from the prior reading is relatively small, the direction of movement highlights that balance sheet normalization remains in place against the backdrop of broader monetary policy decisions.
Market participants will be watching upcoming releases to gauge whether the pace of balance sheet reduction accelerates or stabilizes, as shifts in the Fed’s holdings can influence liquidity conditions and broader financial market dynamics in the United States.
