Fed Discount Window Weekly Update

This week’s Primary Credit activity at the Fed’s Discount Window:

• This week’s primary credit balance was $6.6 billion, down from $6.8 billion a week ago.

• We expect that once the Fed begins to lower its Fed Funds Rate it will do so rapidly. The Central Bank will have Fed Funds back in the 0-2% range during 2025 in our view to help the large banks reinflate their fixed income investment portfolio.

  • Bank of America is a shining example of a mismanaged bank that gorged on Agency and Treasury securities when Fed Funds was at zero. Bank of America is carrying $115 billion in unrealized losses as a result. It is long past time for Bank of America CEO Brian Moynihan to retire.

Source: Federal Reserve

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

---