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A comment on Since mid-April, the Fed has withdrawn ~$140B of liquidity from financial system. Parent comment

Re:Since mid-April, the Fed has withdrawn ~$140B of liquidit... by JumpCrisscross on Wednesday September 21, 2022 @03:19PM (#32930092)
> they keep going at this rate

The run-down rate more than doubled in August [1]. Current estimates to optimal balance sheet are about 4 to 5 years [2].

[1] https://www.federalreserve.gov/newsevents/pressreleases/mone...

[2] https://advisors.vanguard.com/insights/article/thefedsplanto...

[ Parent | on HN ]
Re:Since mid-April, the Fed has withdrawn ~$140B of liquidit... by divbzero on Wednesday September 21, 2022 @03:32PM (#32930330)
The balance sheet shrunk from $8,874,620 million on August 3 to $8,822,401 million on September 7, a rate of about $50 billion per month or $600 billion per year. If continued, this rate of decrease would bring the balance sheet from $8.5 trillion down to $5.5 trillion by 2027, within range of the “optimal balance sheet” described in the Vanguard report.
[ Parent | on HN ]