Tag: Federal Reserve

The Capital Markets Are Bonkers

The Capital Markets Are Bonkers

The capital markets are bonkers having been thrown into contortions by perverse fiscal and monetary policy. Up is down and down is up. The Capital Markets remind me of Bizarro World from the Superman comics where everything is backwards. FISCAL POLICY: One could argue that fiscal policy has been working against Americans since the days … Continue reading The Capital Markets Are Bonkers

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed resumed QT the week ending May 31st having modestly reduced its Treasury and Government Agency security holdings (modest in comparison to the Fed's former QE buying program). Treasuries: The Fed’s Treasury security holdings decreased by $31.1 billion for the week-ended May 31st and decreased by $59.9 billion on a rolling 4-week basis. Agencies: The Fed’s … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

Weekly Update: Bank Term Funding Program

Weekly Update: Bank Term Funding Program

The Bank Term Funding Program (BTFP, bail out/QE) had approximately $93.6 billion in outstanding loans as of Wednesday this week, up from $91.9 billion (+ $1.7 billion) a week ago. The “other credit extensions” line item of $188.1 billion includes the FDIC loans made to regional banks. This figure is down from $192.6 billion (- $4.5 billion) … Continue reading Weekly Update: Bank Term Funding Program

The Fed’s Balance Sheet Reduction (QT) Update <span class="badge-status" style="background:red">Premium</span> 

The Fed’s Balance Sheet Reduction (QT) Update Premium 

The Fed's Treasury holdings were unchanged the week-ended May 24th 2023. Minimum QT activity combined with a substantial back door QE program via the BTFP equals QE on a net basis. Treasuries: The Fed’s Treasury security holdings were unchanged for the week-ended May 24th and decreased by $72.3 billion on a rolling 4-week basis. Agencies: The Fed’s … Continue reading The Fed’s Balance Sheet Reduction (QT) Update Premium 

Don’t Worry About The Debt Ceiling

Don’t Worry About The Debt Ceiling

Don't worry about the debt ceiling. More spending is coming. The risk of Treasury defaulting in June is 0.00000000000000000001% (I jest), but that is neither here nor there. Both the Dems and the GOP want to spend on pork, it is just a question of which flavor. Therefore, the debt ceiling will be lifted, another … Continue reading Don’t Worry About The Debt Ceiling

The Fed’s Balance Sheet Reduction (QT) Update 

The Fed’s Balance Sheet Reduction (QT) Update 

The Fed continued with its modest tightening program, reducing its Treasury position by approximately $29 billion over the past week and by $72 billion on a rolling 4-week basis. However, the Fed's Balance Sheet has barely unwound the Fed's enormous inflation of the money supply (2020-2022) as depicted in the chart below. Treasuries: The Fed’s Treasury … Continue reading The Fed’s Balance Sheet Reduction (QT) Update 

Weekly Update: Bank Term Funding Program

Weekly Update: Bank Term Funding Program

The Bank Term Funding Program (BTFP, bail out/QE) had approximately $83.1 billion in outstanding loans as of Wednesday this week, up from $75.8 billion (+ $7.3 billion) a week ago. The “other credit extensions” line item of $212.5 billion includes the FDIC loans made to regional banks. This figure is down from $228.2 billion (- $15.7 billion) … Continue reading Weekly Update: Bank Term Funding Program

The Fed’s Balance Sheet Reduction (QT) Update 

The Fed’s Balance Sheet Reduction (QT) Update 

The Fed increased its Treasury security holdings by $100 million the week ended May 10th while its Agency security holdings were unchanged. Recall that last week the Fed significantly reduced its Treasury holdings. Treasuries: The Fed’s Treasury security holdings increased by $100 million the week-ended May 10th and were reduced by $57.4 billion on a rolling … Continue reading The Fed’s Balance Sheet Reduction (QT) Update