Liquidity: Difference between revisions

14 bytes removed ,  5 April 2023
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=== FED balance sheet===
=== FED balance sheet===
More details: [[FED Balance Sheet]]


*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>
After the banking developments the FED balance sheet increase again, eliminating almost 2/3 of the previous decline. However is important to point out, that the liquidity given by the FED was for emergency loans, and no for asses purchases as traditional QE.
*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>
*As of April 4, 2023 the balance stands at $8,705 trillions. The decline for the peak is now only $250 billion. <ref>https://www.federalreserve.gov/releases/h41/current/h41.htm</ref><ref>https://fred.stlouisfed.org/series/WALCL</ref>
*Emergency Loan has increased to over $300 billion at the end of march, from almost zero at the beginning.  


===Reverse Repo===
===Reverse Repo===