Fed Discount Window Weekly Update
This week’s Primary Credit activity at the Fed’s Discount Window:
This week’s primary credit balance was $6.8 billion, down from $7.0 billion the week prior. This number will increase as banks deal with the unfortunate combination of large unrealized losses and elevated yields, the former caused by poor bank/investment management.
The Fed can’t have it both ways: if it wants to get prices down it needs to allow unemployment to rise, which has been happening all year as companies cut senior, mid-level and junior staff.
Federal Reserve Balance Sheet: Factors Affecting Reserve Balances - H.4.1: https://www.federalreserve.gov/releases/h41/current/