Fed Discount Window Weekly Update

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

• This week’s primary credit balance was $7.0 billion, up from $6.7 billion a week ago.

• We expect the primary credit balance to increase over the course of 2024 so long as short rates remain elevated and the yield curve remains inverted. An inverted yield curve makes it difficult for banks to run a profitable loan book given elevated short term savings rates.

Source: Federal Reserve

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

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