Fed Discount Window Weekly Update
This week’s Primary Credit activity at the Fed’s Discount Window:
This week’s primary credit balance was $1.8 billion, down from $1.9 billion a week ago.
The Fed is in full “fuel the economy and markets” mode. QT has slowed to a trickle. Should the Fed continue to lower its Fed Funds rate in the near term, I would expect the 10-year Treasury yield to move meaningfully higher. The 10-year Treasury yield could reach 5% in early 2025 should the Fed continue to fan the fires of price inflation.
