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

Quick Take

• The Fed equilibrium expanse has shrunk for the 4th consecutive week — totaling $141 billion.
• In addition, the fed equilibrium has reversed 36% of the post-SVB liquidity injections — which contributed to $392 billion.
• Quantitative tightening and liquidity drained from the strategy proceed arsenic the Fed grapples with inflation.
• Meanwhile, the Fed discount model and Bank Term Funding Programme turned higher successful the latest week — to a combined $143.9 cardinal from $139.5 billion.

Fed Balance Sheet: (Source: FRED)

Discount Window and BTFP: (Source: Bloomberg)

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