The Fed took a net of $4.5 billion out of the market on Thursday, bringing the 5 day net to a surprising drain of $3.75 billion. A brief pulling in of reserves in early December is normal as the Fed reloads for the big push going into Christmas. But the drains this year are beginning to look unusual, especially in view of the impression that the Fed has been giving that it is adding liquidity. They have now added just $250 million to the system over the past four weeks. That’s essentially nothing. It compares with a 4 week net add of $7.5 billion at this point last year. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.
