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Saturday, February 14, 2026

In Seeming Paradox, Fed’s Balance Sheet is Shrinking, but Systemic Liquidity is Growing

Courtesy of Lee Adler of the Wall Street Examiner

The composite liquidity indicator rose last week to reach a new high. The indicator had remained essentially flat since late June, but was and is still firmly entrenched in a strong uptrend. Four of its components remain in bullish intermediate trends. Two are neutral. There’s no sign of any change in the outlook for the markets.

Get regular updates the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, in the Fed Report in the Professional Edition, Money Liquidity, and Real Estate Package. Click this link to try WSE's Professional Edition risk free for 30 days!

Copyright © 2012 The Wall Street Examiner. All Rights Reserved. The above may be reposted with attribution and a prominent link to the Wall Street Examiner.

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