{"id":52380,"date":"2020-04-10T18:58:01","date_gmt":"2020-04-10T23:58:01","guid":{"rendered":"https:\/\/olduvai.ca\/?p=52380"},"modified":"2020-04-10T18:58:03","modified_gmt":"2020-04-10T23:58:03","slug":"this-curve-will-never-flatten-again-fed-balance-sheet-hits-6-1-trillion-up-2-trillion-in-1-month","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=52380","title":{"rendered":"This Curve Will Never Flatten Again: Fed Balance Sheet Hits $6.1 Trillion, Up $2 Trillion In 1 Month"},"content":{"rendered":"\n

This Curve Will Never Flatten Again: Fed Balance Sheet Hits $6.1 Trillion, Up $2 Trillion In 1 Month<\/a><\/h3>\n\n\n\n

Here is an example of a curve that everyone wants to flatten.<\/p>\n\n\n\n

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And here is an example of a curve that while some  – namely the bears – also wants to see collapse, it will never do so  as that would mean the end of western civilization – which is now entirely contingent on the level of the S&P500 – as we know it. We are talking of course, about the Fed balance sheet which is now well above $6 trillion to make sure stocks and bonds don’t crash.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

With that in mind here is all you need to know about this particular “curve”:<\/p>\n\n\n\n

Total Fed assets grew by $293Bn to $6.08 trillion as of close, April 8, with the increase primarily driven by $294bn of Treasury securities added to the SOMA portfolio. Through its credit facilities, the Fed also extended $680bn in temporary liquidity to various counterparties, a decline of $61bn from last week.<\/p>\n\n\n\n

In the past month,<\/strong><\/em> the Fed balance sheet has increased by $2 trillion, more than all of QE3, when the balance sheet increased by $1.7 trillion over the span of a year. The balance sheet increase has also been faster on a weekly basis than anything observed during the financial crisis, increasing as follows:<\/p>\n\n\n\n