Federal Reserve Weekly SOMA Update
The Fed is now throwing gasoline on the burning Dollar by lowering Fed Funds, although the 10YR Treasury yield has climbed higher and spreads have widened as I suggested may happen earlier this week. Someone needs to check out-of-control fiscal deficit spending. The Fed used to provide that check when the institution was half serious. But hey, maybe the Fed’s in-process $2 billion-plus HQ renovation will make it tougher and smarter. Perhaps the reason why the Fed has failed as an institution is that its Board of Governors and 3,000 economists on staff are not surrounded by enough marble.
Treasuries: The Fed’s Treasury position was unchanged for the week-ended September 17th. The Fed reduced its Treasury position by $1.8 billion on a rolling 4-week basis.
Agencies: The Fed’s Government Agency position declined by $63 million for the week-ended September 17th. The Fed’s Government Agency holdings decreased by $14.0 billion on a rolling 4-week basis.
The Fed’s balance sheet holdings: https://www.newyorkfed.org/markets/soma-holdings
Excel file: Our Excel file detailing the Fed’s holdings of Treasury and Agency securities over time: HERE.
