The Fed has been shrinking its balance sheet at the fastest pace ever:
Since April 2022, the Federal Reserve has reduced its balance sheet by $1.71 trillion to $7.25 trillion, a 19% decline. By comparison, from 2017 to 2019 the Fed’s balance sheet runoff amounted to 16%. However, the Fed's balance sheet still stands $3.1 TRILLION above pre-pandemic levels. Meanwhile, the Fed slowed the pace of runoff from $95 billion to $60 billion a month at the beginning of June. Will the Fed's balance sheet ever reach pre-pandemic levels?
BREAKING 🚨: U.S. Treasury Market
Treasury liquidity is now at its worst point in AT LEAST the last 14 years, surpassing even the onset of Covid Source: Barchart, Robin Brooks
CAUTION: In the US, Credit card interest rates have skyrocketed to a shocking 21.47%
Moreover, credit card debt has crossed the $1 trillion mark. And personal interest payments have risen to over $500 billion. To make things worse, excess savings have now run out Source: Game of Trades
Lumber prices continue to sink amid a soft US housing market
Source: The Daily Shot
The Citi US economic surprise index has fallen to about the most negative since 2022
h/t @daniburgz, Liz Abramowitz, Bloomberg
U.S. household stock allocation has reached an all-time high
Source: NDR_Research
Reverse Repo has been falling off a cliff... Going from +$2300 billion to under $400 billion in just 1.5 years
Source: Game of Trades
There was no support for the markets from the liquidity side this week
US liquidity shrank by $50bn as bank reserves saw the largest drop since April tax deadline. Source: Bloomberg, HolgerZ
