Why Isn't The Federal Reserve Shrinking Its Balance Sheet?

I don't know the answer to that but they seem very reluctant to follow their stated plan.

First up, from this week's H.4.1:

1. Factors Affecting Reserve Balances of Depository Institutions

Millions of dollars

Reserve Bank credit, related items, and reserve balances of depository institutions at Federal Reserve Banks	Averages of daily figures			Wednesday Jul 13, 2022
	Week ended Jul 13, 2022	Change from week ended
		Jul 6, 2022	Jul 14, 2021
Reserve Bank credit	8,858,867	+    3,588	+  779,116	8,860,493
Securities held outright1	8,456,776	+    1,118	+  909,806	8,457,212
U.S. Treasury securities	5,745,093	+    1,111	+  531,926	5,745,528
Bills2	326,044	0	0	326,044
Notes and bonds, nominal2	4,941,958	0	+  464,692	4,941,958
Notes and bonds, inflation-indexed2	384,342	0	+   30,885	384,342
Inflation compensation3	92,749	+    1,111	+   36,350	93,184
Federal agency debt securities2	2,347	0	0	2,347
Mortgage-backed securities4	2,709,336	+        7	+  377,880	2,709,337

 ....MUCH MORE

And from the Federal Reserve Bank of Saint Louis' FRED Database the total asset side of the balance sheet which includes the much, much smaller line items after the MBS line:

 

Now I know that the asset roll-off will be choppy but total assets held by the Fed were actually up $4.016 Billion for the reporting week at $8.895867 Trillion vs. the prior week's $8.891851 Trillion.

More importantly we are now 45 days into a plan to shed $30 billion in treasuries per month and $17.5 billion in agency MBS's, an idealized $71.25 billion decrease for the month-and-a-half versus the actual decrease of $19.182 billion. 

Not only is the Fed not on track to hit their goals, they are falling further and further behind.

Here are our H.4.1 posts for last week: "Huzzah! The Fed's Balance Sheet Shrinkage Appears To Have Begun!", two weeks ago: "The Federal Reserve's Plan To Shrink Its Balance Sheet Does Not Appear To Be Going Very Well" and three weeks ago: "Fed Balance Sheet: Not Seeing The Reduction In Fannie/Freddie Mortgage-Backed Securities".

For reference the much ballyhooed May 4, 2022 press release: 

Plans for Reducing the Size of the Federal Reserve's Balance Sheet

....The Committee intends to reduce the Federal Reserve's securities holdings over time in a predictable manner primarily by adjusting the amounts reinvested of principal payments received from securities held in the System Open Market Account (SOMA). Beginning on June 1, principal payments from securities held in the SOMA will be reinvested to the extent that they exceed monthly caps.

• For Treasury securities, the cap will initially be set at $30 billion per month and after three months will increase to $60 billion per month. The decline in holdings of Treasury securities under this monthly cap will include Treasury coupon securities and, to the extent that coupon maturities are less than the monthly cap, Treasury bills.
• For agency debt and agency mortgage-backed securities, the cap will initially be set at $17.5 billion per month and after three months will increase to $35 billion per month.....