{"id":56009,"date":"2020-12-14T17:59:59","date_gmt":"2020-12-14T22:59:59","guid":{"rendered":"https:\/\/olduvai.ca\/?p=56009"},"modified":"2020-12-14T17:59:59","modified_gmt":"2020-12-14T22:59:59","slug":"update-on-the-feds-qe","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=56009","title":{"rendered":"Update on the Fed\u2019s QE"},"content":{"rendered":"

Update on the Fed\u2019s QE<\/a><\/h3>\n

No Wonder the Cry Babies on Wall Street are clamoring for more. Five SPVs, already on ice, will expire on December 31.<\/strong><\/p>\n

The Fed released details today of its corporate-bond purchases in November ($215 minuscule millions) and corporate-bond ETF purchases in November (zilch). Last time it bought any ETFs had been on July 23. It released details about its other activities in its Special Purpose Vehicles (SPVs), which are essentially on ice. Five of them will expire on December 31, including the SPV that handles the corporate bond purchases.<\/p>\n

The Fed unwound its \u201crepo\u201d positions in early July down to zero, and more recently most its \u201ccentral bank liquidity swaps.\u201d Its purchases of residential mortgage-backed securities (MBS) have been in a holding pattern since mid-September. What it is still buying at a steady clip are Treasury securities, thereby monetizing part of the debt the government is adding monthly to its gigantic pile.<\/p>\n

The net effect is that its total assets have edged up just 1.0% since June 24, with a dip in the middle, after exploding higher in the prior three months. This is the Fed\u2019s tool to bail out asset holders during each crisis, and enrich them when there is no crisis:<\/p>\n

There is now clamoring among the crybabies on Wall Street that the Fed should increase its asset purchases, and they\u2019re pressuring the Fed to announce a big increase at the next meeting, because, I mean, how else are markets going to keep on going up?<\/p>\n

In terms of 2020: Total assets on the Fed\u2019s\u00a0balance sheet<\/a>\u00a0for the week ended December 9 rose by $20 billion from the prior week to $7.243 trillion, but were down a smidgen from the peak on November 18, having gone essentially nowhere over the past five months:<\/p>\n

\"\"<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Update on the Fed\u2019s QE No Wonder the Cry Babies on Wall Street are clamoring for more. Five SPVs, already on ice, will expire on December 31. The Fed released details today of its corporate-bond purchases in November ($215 minuscule millions) and corporate-bond ETF purchases in November (zilch). Last time it bought any ETFs had […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2809,49,303,661,662,1234,3650,860],"class_list":["post-56009","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bailouts","tag-balance-sheet","tag-fed","tag-qe","tag-quantitative-easing","tag-stimulus","tag-us-federal-reserve","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56009","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=56009"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56009\/revisions"}],"predecessor-version":[{"id":56010,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56009\/revisions\/56010"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=56009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=56009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=56009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}