The world's major central banks have finally unwound most of their pandemic-era balance sheet growth: The Federal Reserve’s total assets as a % of US GDP are down to 21%, the lowest percentage since the 2020 pandemic. By comparison, the peak was recorded in 2021 at ~37%. At the same time, European Central Bank assets as a % of Eurozone GDP fell below 40% for the first time since Q1 2020, from the ~65% peak in 2022. Total assets on the Bank of Japan’s balance sheet as a % of Japanese GDP are down to ~103%, their lowest since 2020, from the ~130% high in 2021. The Bank of England’s assets are down to ~21% of UK GDP, the lowest since 2016, from the ~40% peak in 2021. The pandemic-era central bank stimulus is largely gone.(The Kobeissi Letter)