**Banks React to Rate Cuts š**
JPMorgan Chase, one of America's largest banks, has been making significant adjustments to its balance sheet.
Since 2023, the bank has shifted nearly $350 billion from its Federal Reserve account into U.S. Treasuries.
This move shows how traditional financial institutions are adapting their strategies in response to rate cuts by the Fed š
**Impact on Balance Sheets š°**
As a result of this transfer:
JPMorgan's Fed deposits decreased from $409 billion at year-end 2023 to $63 billion by Q3 2025.
Meanwhile, its Treasury holdings surged from $231 billion to $450 billion.
The move is seen as a response to the Federal Reserve cutting rates to their lowest level.