Unlike past QE programs that included the purchase of U.S. Treasuries, the Fed is focused only on purchasing Mortgage Backed Securities (MBS). Although the Fed is pledging to purchase $40 billion in MBS each month, the final settlement for these Fed purchases is not immediate. Instead, it can take up to 180 days for the Fed to complete the transaction on these purchases. As a result, the initial phases of the current QE program have been marked by a slow and uneven expansion of the Fed's balance sheet that has also been offset by accelerated prepayment of existing MBS in the Fed's portfolio. Over time as this program builds momentum, the Fed's balance sheet is likely to smooth into a more consistent expansion.
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Fed balance sheet expands in latest week - CNBC