The Federal Reserve continues quantitative tightening (QT) as total assets fall to ~$6.58T, down sharply from the 2022 peak near $9T.
Balance Sheet Snapshot:
• Jan 2026: $6.58T
• Jan 2025: $6.83T
• Peak (Apr 2022): $8.97T
• Pre-COVID (2020): $4.17T
Asset Composition:
• U.S. Treasuries: $4.24T
• Mortgage-Backed Securities: $2.04T
• Other assets: $299B
Liquidity Signals:
• Bank reserves: $3.05T (still ample, but trending lower)
• Reverse repos: $3B (down from $167B YoY)
• Treasury General Account: $779B (liquidity parked at the Fed)
Why it matters:
QT = less excess liquidity in the system.
This backdrop typically supports higher yields, tighter financial conditions, and limits upside for risk assets unless growth or rate-cut expectations improve.
🇦🇷 ARGENTINA RETAIL SALES: NOMINAL vs REAL REALITY (JAN 2026) 📉📈
Argentina’s retail data shows a strong disconnect between prices and purchasing power.
YoY – Nov 2025
• Nominal sales: +17.3% (↑ from 15.1% in Oct)
• Real sales (inflation-adjusted): -2.3%
→ Demand still contracting in real terms, despite slower decline than October (-4.7%)
Top Nominal Gainers (Current Prices):
• Furniture & Home Décor: +41.9%
• Bookstores & Stationery: +39.8%
• Food & Kiosks: +37.8%
• Toys: +27.2%
Regional Breakdown:
• Buenos Aires City: +20.8%
• Greater Buenos Aires: +16.9%
Big Picture:
High inflation continues to inflate headline growth, while consumer purchasing power remains under pressure. Real demand contraction eased late-2025, but recovery is not here yet.
📌 Watch 2026 inflation trends — real retail growth depends on price stability, not sales value.