Remains in Trend for 2022 to $2 Trillion. FED Supportive of collaterals. No end in sight... ____________________________________ Monday Coupon Purchases begin the New Year @ $8.7 Billion. FED Balance Sheet - New all-time HIgh @ $8.791 Trillion. _____________________________________ May your New Year be filled with Peace and Joy Until 2022 - HK
Previously I wrote a brief note explaining caution for the US Banking industry as illustrated by XLF. This is due to: - market risk of a broader market pullback - as currently being experienced - impact from Covid-19 variants like Delta etc., - the cumulation of record high bank reserves (cash) which serve to stress Bank Capital and Capital adequacy ratios....
I know FED is playing big moves ahead so far to prevent the State from the pandemic before it may cause more disruption around the country. The reason is beyond technical analysis for me to think even slightly how this pair might gonna end up trending upward. The big moves which I'm talking about from fed were the double rate cut within a month and some repo...
Market participants seem to have taken Fed’s liquidity injections as QE, dragging dollar down. Despite increasing the balance sheet, the Fed’s move should be really reassuring investors that funding pressures, at least in the short-term, are and will be lower. Or, should it not? Well, the demand for funding was slower than expected near year’s end. But is...