Fed Balance Sheet QT: -$43 Billion in December, -$2.11 Trillion from Peak, to $6.85 Trillion. Bank-Panic BTFP Nearly Gone by Wolf Richter • Jan 2, 2025 • 79 Comments Quantitative Tightening shed 44% of Pandemic-QE assets. Fed’s share of the ballooning US national debt dropped to the lowest since 2019.
10-Year Treasury Yield Rose 100 Basis Points since September as the Fed Cut 100 Basis Points. Why the Historic Divergence? by Wolf Richter • Dec 27, 2024 • 222 Comments Treasury Yield Curve Steepens. Bond Market a Wee Bit Nervous?
Who Bought and Holds the Recklessly Ballooning US National Debt, even as the Fed is Unloading its Treasury Securities? by Wolf Richter • Dec 24, 2024 • 116 Comments A hot question for an iffy situation. So here are the holders as of Q3.
Treasury Yield Curve Un-Inverts Entirely, as Long-Term Yields Rise while Short-Term Yields Stay Put, No Longer Pricing in Rate Cuts. Mortgage Rates back Above 7% by Wolf Richter • Dec 21, 2024 • 120 Comments Since September, the Fed cut by 100 basis points while the 10-year Treasury yield rose by 87 basis points! There are now doubts about further cuts.
After Fed Trims ON RRP Rate by 5 Basis Points on Top of Rate Cut, ON RRPs Plunge to $98 Billion, Lowest since April 2021, -$2.3 Trillion from Peak, on the Way to Zero by Wolf Richter • Dec 21, 2024 • 59 Comments QT has only drained ON RRPs so far, but not Reserves, which are still where they’d been when QT started in July 2022. QT has a long way to go.
What Powell Said at the FOMC about Today’s PCE Price Index: “We Still Have Work to Do Though, Is How We’re Looking at it. We Need policy to Remain Restrictive to Get that Work Done” by Wolf Richter • Dec 20, 2024 • 42 Comments Inflation is still in services, no progress in 6 months. Another bummer: Durable goods deflation, a contributor to cooling inflation, may be over.
Fed Cuts by 25 Basis Points, to 4.25%-4.50%, Sees Only 2 Cuts in 2025, Sees Higher Inflation, Higher “Longer-Run” Rates. QT Continues by Wolf Richter • Dec 18, 2024 • 247 Comments Energetic backpedal from the aggressive monster-rate-cut trajectory envisioned by the markets three months ago.
Fed Balance Sheet QT: -$98 Billion in November, -$2.07 Trillion from Peak, to $6.90 Trillion, Lowest since May 2020 by Wolf Richter • Dec 5, 2024 • 71 Comments Quantitative Tightening has shed 43% of the assets the Fed had added during pandemic QE. Bank-panic facility BTFP is vanishing.
Operating Losses and “Unrealized” Losses of the Federal Reserve in Q3 2024 by Wolf Richter • Nov 23, 2024 • 86 Comments QE was a huge gravy train for taxpayers. But then came the hangover.
Fed’s Balance Sheet Drops Below $7 Trillion. QT: -$53 Billion in Oct., -$1.97 Trillion from Peak, to $6.99 Trillion, Back to May 2020 by Wolf Richter • Nov 7, 2024 • 83 Comments Quantitative Tightening has shed 41% of the assets that the Fed had added during pandemic QE.
