The Fed did a big drain today after announcing yesterday that they would redeem $5 billion in maturing 4 week T-bills they hold in their permanent asset base. They have now drained $3.5 billion from the system over the past four weeks. That compares with a 4 week net add of $6.8 billion at this point last year. The Fed has been giving the impression that it has been adding liquidity to combat the credit market crisis, but this data belies that. 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.
