Its balance sheet grew this week as the Fed closed on a large amount of forward purchases of MBS. That and their GSE and Treasury purchases were enough to offset a large decline in alphabet soup. Since mid March, the trend of increasing Fed securities holdings and declining alphabet soup have exactly offset one another. At the same time money supply growth has also gone flat, as measured by MZM. But the commercial paper market and retail money fund assets are both in a state of total collapse. 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.
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