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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MNI Fed Balance Sheet Tracker - Jun 23, 2023
MNI Fed Balance Sheet Tracker - Jun 23, 2023
EXECUTIVE SUMMARY:
- Fed lending / liquidity extension to banks continues to fade as banking sector stress appears to be abating, with a continued shift away from Discount Window usage and toward takeup of the Bank Term Funding Program (BTFP).
- Total assets have fallen to $8.36T, not far from the $8.34T level seen just before the SVB / bank crisis in March, and we should continue to see new cycle lows so long as liquidity provision growth remains subdued.
- The decline on the asset side of the ledger has meant by definition a decline in liabilities. So far it’s been overwhelmingly a story of ON RRP cash being reduced, with reserves steady as as the Treasury rebuilds its post-debt limit cash pile in the TGA.
- Chair Powell showed little concern about reserve scarcity at last week’s June FOMC press conference (“we don't think reserves are likely to become scarce in the near term or even over the course of the year”) and reiterated the same sentiments before Congress this week.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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