Keeping you up to date on the latest data releases.
- Federal Reserve Balance Sheet
As the Federal Reserve continues to prepare for its eventual exit from an accommodative monetary policy stance, it has worked to ready its Term Deposit Facility. Early this week, the facility was tested with a small-scale ($1 billion) auction operation of two-week term deposits. The auction was met with great demand, drawing a bid-to-cover ratio of over 6. Testing will continue through the summer, as the Fed works to cope with the elevated level of excess reserves remaining from the financial crisis. Other aspects of the balance sheet were largely unchanged this week, as the recently reestablished central bank liquidity swap lines were untapped. Small adjustments were made as some agency mortgage-backed securities purchases were cleared and TALF loans were prepaid.