Gilead Sciences, Inc. (GILD) Stock Forecasts

Summary

At its last meeting, the Federal Reserve cut the federal funds rate and also announced that it will end its balance-sheet reduction program in December. Going forward, paydowns will be reinvested into Treasury bills. This is designed to keep liquidity in the “repo” market. The Fed initiated the quantitative tightening plan in June 2022, and the balance sheet topped the $8.9 trillion mark in July 2022 — up from $7.3 trillion at the onset of the pandemic. The current balance sheet is $6.3 trillion and consists of $4.2 trillion of U.S. Treasuries (T-bills, notes, bonds, and TIPSs) and $2.1 trillion in agency mortgage-backed securities (MBS). We note that the MBS portfolio is deeply underwater and the runoff averages about $10-$15 billion per month. In March 2025, the Fed released its 2024 Statement of Operations and reported a loss of $78 billion due to earning just over 2% on securities owned versus paying 3.75%-4.00% in the fed funds market. The central bank certainly has a lo