In yesterday’s Fed report, I erroneously reported a total of 14 billion in repos added on the day. The total was $19 billion. The net add was $6.25 billion not $1.25 billion. The Fed did an extra repo yesterday that I missed. The extra repo suggests that the Fed was in fact reacting to the market meltdown in the morning, not putting the market in a noose, as I had suggested. However, at the same time, $12 billion in new Treasuries were settling yesterday, so the $6.25 billion add fell short of monetizing all of the new paper. It also doesn’t change the fact that the Fed has been tightening the monetary base for the past 8 months as the market surged higher.
I apologize for this error, and any misperception it may have caused Professional Edition subscribers.
