As Bruce Springsteen famously mumbled, The Fed’s Balance Sheet is “Goin’ Down.”
As of Feburary 6, 2016, The Federal Reserve of New York further shrank The Fed’s Balance Sheet by $14.2 billion.
This week it was $11.665 billion of US Treasury Notes and Bonds and $2,525 billion of US Floating Rate Notes. For a grand total of $14.2 billion reduction in liquidity.
Now The Fed has unwound $434 billion of its prodigious balance sheet.
While other central banks filling their punch bowls ever further.
So, The Fed is continuing its draining of the monetary punch bowl on autopilot.
Views: