Tracker: The Federal Reserve’s Balance Sheet Assets - AAF
WEBSep 30, 2024 · The development of quantitative easing as a go-to tool for the Fed in times of crisis has led to an unprecedented focus on one of its traditionally unremarkable aspects – the Fed total assets. Just as with any other firm, securities that the Fed purchases are considered assets and therefore are represented on the Fed’s balance sheet.
Pssst! The Fed Is Shrinking Its Balance Sheet - AAF
WEBNov 17, 2023 · But readers may not have focused on the fact that the Fed is also shrinking its balance sheet, also known as quantitative tightening. Recall that in 2020 and 2021, the Fed figuratively printed $5 trillion in new cash and bought Treasury securities and mortgage-backed securities at a rate of $90 billion per month.
The Fed Is Continuing to Tighten - AAF
WEBSep 19, 2023 · The chart below is reproduced from the latest version of Thomas Kingsley’s tracker of the Fed’s balance sheet. As one can see, the balance sheet ballooned to $9 trillion in early 2022 as the Fed bought $60 billion per month in Treasury Securities and $30 billion per month of mortgage-backed securities. In the process, the Fed pumped nearly ...
Federal Reserve’s Balance Sheet Tops $7 Trillion for First Time
WEBMay 22, 2020 · The Federal Reserve’s balance sheet topped $7 trillion for the first time in history, according to newly released figures. AAF’s Director of Financial Services Policy Thomas Wade is tracking the Fed’s latest actions in response to the coronavirus pandemic as well as the overall magnitude of its direct interventions. While the Fed is ...
Bank Capital Requirements: A Primer - AAF
WEBOct 16, 2018 · Since Basel, the Fed has applied two key capital requirements to U.S. banks: the ratio of T1 capital to total assets (the leverage ratio); and the ratio of T1 and T2 capital to risk-weighted assets (RWAs). The leverage ratio is perhaps the simplest tool available to regulators for determining bank capital requirements.
Timeline: The Federal Reserve Responds to the Threat of Coronavirus
WEBMar 15, 2020 · The Fed disclosed in its weekly reserve balance report that it had purchased $12 million in loans via the Main Street Lending Program in its first day of operation. As some analysts question the takeup of the program, the Fed also announced that it had modified the Main Street Lending Facility to allow a wider range of non-profits to apply ...
Six Months of FedNow - AAF
WEBJan 16, 2024 · Four years later, in July 2023, the Fed launched its FedNow RTP network. The system has been live now for six months, giving us the opportunity to review the progress of one of the most expensive, duplicative, and anticompetitive initiatives ever launched by the Fed. A Brief Overview of FedNow. Consider the payment system as the …
Hawkish Fed Talk - AAF
WEBApr 8, 2022 · This is bigger (nearly twice as big) and faster than the last time the Fed started reducing its balance sheet. That point was hammered home by Vice Chair Lael Brainard in a speech on Wednesday: “The [FOMC] will continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the …
The Fed Gets Tough (er) on Inflation - AAF
WEBJan 6, 2022 · Recall that the balance sheet expands when the Fed buys Treasuries or mortgage-backed securities (MBS). The flip side to those purchases is cash injected into financial markets, so the increased size of the balance sheet is a measure of the monetary stimulus floating around in markets. Reducing the size of the balance sheet is reducing …
How The Federal Reserve's Automated Clearing House Informs …
WEBJul 11, 2019 · Executive Summary Since the 1970s the Federal Reserve has acted both as regulator and market participant in the provision of automated clearing house services. Twenty years of decreasing prices that are not matched by identified cost-savings suggest that the Federal Reserve is using its platform for non-market policy purposes that serve …