Weekly Update: Bank Term Funding Program
This week’s BTFP activity:
The Bank Term Funding Program (BTFP, bail out/QE) had approximately $135.8 billion in outstanding loans as of Wednesday this week, up from $131.3 billion a week ago. It is not surprising that BTFP levels have increased in recent weeks as the BTFP loan rate has declined (see chart below). We expect this trend to continue. The BTFP is set to expire on March 11th 2024. Our view is that the Fed will renew this bailout program for another year.
FEDERAL RESERVE statistical release: https://www.federalreserve.gov/releases/h41/current/
