This is a syndicated repost courtesy of Confounded Interest – Online Course Notes for Financial Markets. To view original, click here. Reposted with permission.
The good news? The Fed continued to unwind its $4.4 TRILLION balance sheet.
The bad news? The Fed is shrinking it at sloth-like speed.
As an example, the latest SOMA report from the Fed on New York saw a $6 billion decline in the Fed balance sheet. That is only 0.14% per week. At this rate, it will take over 700 weeks (or 13.46 years) to unwind.
Liquidity moves markets!Click here to learn how you can follow the money.
This week, Treasury notes and Treasury bonds were the primary driver of the decline. Agency MBS? Not so much.
Yellen’s last presentation.
Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.