Fed Balance Sheet QT: -$98 Billion in November, -$2.07 Trillion from Peak, to $6.90 Trillion, Lowest since May 2020 by Wolf Richter • Dec 5, 2024 • 70 Comments Quantitative Tightening has shed 43% of the assets the Fed had added during pandemic QE. Bank-panic facility BTFP is vanishing.
Operating Losses and “Unrealized” Losses of the Federal Reserve in Q3 2024 by Wolf Richter • Nov 23, 2024 • 86 Comments QE was a huge gravy train for taxpayers. But then came the hangover.
Fed’s Balance Sheet Drops Below $7 Trillion. QT: -$53 Billion in Oct., -$1.97 Trillion from Peak, to $6.99 Trillion, Back to May 2020 by Wolf Richter • Nov 7, 2024 • 83 Comments Quantitative Tightening has shed 41% of the assets that the Fed had added during pandemic QE.
Fed Cuts by 25 Basis Points, to 4.75% Top of Range, as Telegraphed to Backpedal from Monster Cut. QT Continues by Wolf Richter • Nov 7, 2024 • 108 Comments “The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance.”
Fed’s ON RRPs Plunge to $155 Billion as QT Drains Liquidity, Nothing Blown Up Yet. SOFR & TGCR Spreads Begin to Move by Wolf Richter • Nov 1, 2024 • 62 Comments “Such temporary rate pressures can be price signals” that help markets redistribute liquidity to where it’s needed most: Fed’s Logan.
Treasury Buybacks: Update on the Bond Market Bloodletting by Wolf Richter • Oct 25, 2024 • 62 Comments Among the jewels: Treasury Dept. paid 88 cents on the dollar to buy back 10-year Treasury notes sold at auction Aug. 2020 at a record-low yield of 0.677%.
The Future of QT, Balance Sheet Composition, and Liquidity: Fed’s Lorie Logan by Wolf Richter • Oct 22, 2024 • 101 Comments QT continues. Liquidity “more than ample.” Money market spreads widening briefly is OK. Selling MBS, shifting Treasuries to T-bills on the table.
What If There’s No Landing at all, But Flight at Higher Speed and Altitude than Normal, with Higher and Rising Inflation? by Wolf Richter • Oct 13, 2024 • 194 Comments That scenario is re-emerging as a real possibility in recent economic data.
Bond Market Smells a Rat: On Eve of CPI Inflation Data, 10-Year Treasury Yield Jumps to 4.08%, +43 bps since Monster Rate Cut by Wolf Richter • Oct 9, 2024 • 135 Comments Fed is seen as deprioritizing inflation fight, while a tsunami of supply heads for markets.
Mortgage Rates Explode, 2-Year & 10-Year Treasury Yields Spike, Monster Rate-Cut Hopes Doused, Inflation Fears Resurface: Yield Curve Before & After the Rate Cut by Wolf Richter • Oct 5, 2024 • 138 Comments The yield curve moved further toward un-inversion, but not the way it was hoped.
