Courtesy of Mish.
Inquiring minds are monitoring the Fed’s Balance Sheet.
click on chart for sharper image
One more week like this and the FED balance sheet will be $1 trillion more than last year at this time. Currently now at $980 billion with this past week adding $20 billion.
Breakdown From Year Ago
- Total Credit: +980.711 Billion to $3.796 Trillion
- US Treasuries: +448.877 Billion to $2.106 Trillion
- Mortgage Backed Securities: +525.072 Billion to $1.401 Trillion
Of US treasuries, the Fed added (and holds) precisely $0 in short-term bills.
Of US Treasuries, the Fed added 16 Billion in Inflation Indexed notes
Obviously inflation is not a concern to the Fed. Bank profits are.
Excess Reserves
The Fed is pumping money into the economy at at rate of $85 billion a month. Banks cannot use the money and are not lending it. The money piles up as excess reserves and the Fed (taxpayers) pays interest on excess reserves….
