Thursday, October 8, 2009

Fed Balance Sheet (Oct 8)

Total Balance Sheet size continues to plateau as the fed's lending programs contract and their "
monetizations" continue to add securities - at a significantly slower pace - to the BS. The program of buying UST/MBS/Agencies is also beginning to wind down. One noticeable development is a large draw-down in the treasury's general account as well as a decrease in the supplemental account causing reserves of depository institutions to balloon to just under $1 Trillion.