Fed Discount Window Weekly Update

Primary credit borrowing from the Fed’s discount window increased 69% this week.

• Last week’s Primary Credit outstanding was $5.1 billion. This week that figure increased 69% to $8.6 billion. The banks are not in great shape, especially with the elevated level of unrealized losses they carry. Those unrealized losses will persist so long as yields remain elevated.

• While the Fed is no longer extending new loans under the BTFP, the BTFP’s outstanding loan balance is $125.7 billion.

Fed Discount Window Primary Credit activity: HERE

Federal Reserve Balance Sheet: Factors Affecting Reserve Balances - H.4.1: https://www.federalreserve.gov/releases/h41/current/

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