Insights

Fed balance sheet declines for fourth consecutive week – down $141B

Quick Take

  • The Fed balance sheet has shrunk for the fourth consecutive week — totaling $141 billion.
  • In addition, the fed balance has reversed 36% of the post-SVB liquidity injections — which contributed to $392 billion.
  • Quantitative tightening and liquidity drained from the system continue as the Fed grapples with inflation.
  • Meanwhile, the Fed discount window and Bank Term Funding Programme turned higher in the latest week — to a combined $143.9 billion from $139.5 billion.
Fed Balance Sheet: (Source: FRED)
Fed Balance Sheet: (Source: FRED)
Discount Window and BTFP: (Source: Bloomberg)
Discount Window and BTFP: (Source: Bloomberg)

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