January 10, 2011
Fed Pays a Record $78.4 Billion to Treasury
By SEWELL CHAN
WASHINGTON — Central banking in the aftermath of a financial crisis is a lucrative business, it turns out.
The Federal Reserve will deliver a record $78.4 billion to the T…
The Treasury will raise “just” $67-72 billion new cash next week. That’s some $20 billion less than the TBAC forecast. Woohoo. The recovery is here. TARP repayments, growing tax receipts, and reduced outlays are giving Treasury finances a boost. QL1.5 is working just the way it’s supposed to. The cash is filtering through the markets…
In a review of the commercial paper and money fund data we saw evidence of a stall in the explosive rate of transfer of assets into money market funds. They lost about $24 billion in the week ended 2/23, over a period where the S&P lost nearly 100 points. There goes the theory that all…
