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Liquidity (view source)

Revision as of 20:04, 24 February 2023

1 byte added ,  24 February 2023
→‎Current data and trends:
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*As of Fabruary 17, 2023 the balance stands at $8.384 Trillions, it has declined $581 B from $8.965 Trillion in April 2022. Still a small 6.48% decline. <ref>https://www.federalreserve.gov/releases/h41/current/h41.htm</ref><ref>https://fred.stlouisfed.org/series/WALCL</ref>
*As of Fabruary 17, 2023 the balance stands at $8.384 Trillions, it has declined $581 B from $8.965 Trillion in April 2022. Still a small 6.48% decline. <ref>https://www.federalreserve.gov/releases/h41/current/h41.htm</ref><ref>https://fred.stlouisfed.org/series/WALCL</ref>
*QT is expected to continue in the coming months, with no pause expected, contrary to rate hikes. With a reduction of $60 B per month in treasuries and $35 in MBS. However, the FED has already been behind schedule, treasuries are running 8% ($33B) behind schedule, and MBSs 59% ($120B) behind schedule. <ref>https://twitter.com/DiMartinoBooth/status/1626365171688955904</ref>
*QT is expected to continue in the coming months, with no pause expected, contrary to rate hikes. With a reduction of $60 B per month in treasuries and $35 in MBS. However, the FED has already been behind schedule, treasuries are running 8% ($33B) behind schedule, and MBSs 59% ($120B) behind schedule. <ref>https://twitter.com/DiMartinoBooth/status/1626365171688955904</ref>
===Bank Reserves===
The correlation between the stock market and bank reserves has been closely follow since it suggests the sock market follows the movement of reserves.
* As an effect of QT, Bank reserves are also declining, they stand at 3.1 Trillions,  it has declined$  trillion since November 2021, a 25% decline.
*It has been stable the last 3 months at $3 trillions, which could explain some of the financial easing that we saw in January 2023  <ref>https://fred.stlouisfed.org/series/TOTRESNS</ref>
*Bank reserves are still above the pre-pandemic level


===Reverse Repo===
===Reverse Repo===
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*
===Bank Reserves===
The correlation between the stock market and bank reserves has been closely follow since it suggests the sock market follows the movement of reserves.
* As an effect of QT, Bank reserves are also declining, they stand at 3.1 Trillions,  it has declined$  trillion since November 2021, a 25% decline.
*It has been stable the last 3 months at $3 trillions, which could explain some of the financial easing that we saw in January 2023  <ref>https://fred.stlouisfed.org/series/TOTRESNS</ref>
*Bank reserves are still above the pre-pandemic level


===M2===
===M2===
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