The Fed has reduced its balance sheet by $206 billion since Quantitative Tightening (QT) started in April. The notable part is $36 billion of it was last week; 1/6 of it. This is still a drop in the bucket compared to the 11x increase we have seen in the balance sheet since 2008. $800 billion to $8.9 trillion. https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm
We likely have not reached the bottom in stocks, but we are likely over halfway. Treasury yields are still increasing which will drive down the prices of high PE stocks. While I do think The Fed will blink, in the short-term lower stocks will aid in reducing inflation. The real question becomes when will unemployment become unbearable for politicians and therefore the Fed. And then the Pivot to more QE.
