JPMorgan Shifts $350B from Fed to Treasuries Amid Rate Cuts

JPMorgan Chase & Co. has reallocated $350 billion from its Federal Reserve balance to U.S. Treasuries, capitalizing on the central bank's recent rate cuts. SEC filings reveal the bank's Fed holdings plummeted from $409 billion in late 2023 to $63 billion by Q3 2025, while Treasury investments surged from $231 billion to $450 billion.

The strategic pivot follows the Fed's decision to slash rates to their lowest level in three years, reversing a tightening cycle that saw rates climb from near-zero to over 5% between 2022 and early 2023. "It's clear JPMorgan is migrating money at the Fed to Treasuries," observed BankRegData founder Bill Moreland. "Rates are going down, and they're front-running."

This maneuver builds on JPMorgan's disciplined approach during the pandemic-era low-rate environment, when it avoided the long-dated bond losses that plagued competitors. The bank's stable deposit base allowed it to profit from Fed balances during the tightening cycle, while its timely shift into Treasuries locked in higher yields ahead of further rate declines.