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MNI Fed Balance Sheet Tracker - Aug 4, 2023

FED

We've just published our latest Fed Balance Sheet Tracker - PDF here

  • Federal Reserve balance sheet reduction is showing increasing signs of getting back to "normal" after the banking turmoil earlier in the year.
  • QT looks set to continue running in the background indefinitely, even in the event of rate cuts.
  • With limited signs of bank deposit outflows evident lately, and money market demand for bills holding up at these rising yields, there is little sign of concern for reserve scarcity developing at this stage.

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