Liquidity Up Since April 2023 Thanks To The Fed
This Fed's Monetary Policy Is Not Restrictive
Liquidity has increased since April 2023 when measured by commercial bank deposits plus retail money market funds. Liquidity was injected by the Fed’s Bank Term Funding Program, which is scheduled to expire in March and be replaced by the Fed’s discount window. The Fed under Chairman Jerome Powell is hardly restrictive. The Fed Funds Rate is window dressing. Liquidity is what moves economies and markets.
