What is the Treasury Up To?, New Monetarist Economics: As I pointed out here, the QE2 Treasury security purchases by the Fed have actually had little effect on the stock of outside money, principally because there have been large inflows into the Treasury's General Account at the Fed. That continues to be the case. The ... Fed's stock of securities has increased about $122 billion since the QE2 program began in November 2010. However,... we see modest increases in currency and reserves. Since early November, the increase in currency is about $18 billion, and in reserves only about $10 billion. The ... Treasury accumulated $81 billion in its General Account over the same period.
In its General Account and Supplementary Financing Account with the Fed, the Treasury now holds a total of about $315 billion. ...[I]f you thought that some of the effects of QE2 might come through effects on the stock of outside money (e.g. increases in the currency stock as banks dump the extra reserves), there is not that much of that happening.