Weekly Update: Bank Term Funding Program

Dec 15, 2023

The Bank Term Funding Program (BTFP, bail out/QE) had approximately $123.8 billion in outstanding loans as of Wednesday this week, up from $121.7 billion a week ago. We fully expect the Fed to renew this bailout when it expires in mid-March 2024. The proper action for the Fed to take would be to allow the BTFP bailout to expire. The Fed will not do so as that type of hard landing would cause Fed Chairman Jerome Powell discomfort. This week the Fed caved to the inflation dragon that it created. America would be better off without the Fed, or any Central Bank. Central planners rarely if ever get it right.