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MNI Fed Balance Sheet Tracker - Aug 25, 2023

MNI Fed Balance Sheet Tracker - Aug 25, 2023

MNI Fed Balance Sheet Tracker - Aug 25, 2023

EXECUTIVE SUMMARY:

  • The decline in the Fed’s Balance sheet has continued in steady if unremarkable fashion through August – which will be welcomed by Fed officials following the banking turmoil earlier this year.
  • Recent communications suggest that maintaining QT even as they cut rates is on the Fed’s mind as they seek to bring the balance sheet back to resemble something closer to “normal”.
  • Despite concerns over bank reserve scarcity emerging as the Treasury rebuilds its cash pile at the Fed and QT continues, there is no evidence that this is happening so far.

    For full PDF analysis:

    FedBalanceSheet-Aug252023.pdf



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