While the Fed withdrew $270 billion from the economy through quantitative tightening, the Treasury was busy easing the pain of austerity by injecting $405 billion into the economy.

Fed assets have fallen from a peak of $8.95 trillion to $8.677 trillion since April, a cumulative drop of more than $270 billion. At the same time, however, Treasury deposit accounts peaked at $957 billion in April, falling to $552 billion, a cumulative drop of $405 billion.

The U.S. Treasury account, when the amount of the account increases, means that the government is withdrawing money from the economy. In other words, it did not spend the money raised by issuing bonds, but deposited it into the Treasury's account with the Federal Reserve. But when the Ministry of Finance consumes this deposit account, it also means that it releases funds into the real economy, stimulating economic activity.

Edit / Corrine