Keeping you up to date on the latest data releases.
- Federal Reserve Balance Sheet
The FOMC statement from this week gave very little hope that the composition or the size of the Fed’s balance sheet would be changing anytime soon. Weak economic data and low inflation trends and expectations suggest that the Fed will likely be content to leave its accommodative monetary policy on the balance sheet for a while longer. In preparing for the transition, however, the H.4.1 data release has added a weekly update on the status of Term Deposits outstanding from the Fed’s new Term Deposit facility. This facility adds another dimension to the Fed’s reserve draining powers, all which may be used in tandem with interest on reserve rate hikes or asset sales. There were no major changes on the holdings side of the balance sheet, but a minor action was another $3 million drawing by Japan through the central bank liquidity swap lines.