Commentaries

June 2020 - Fed’s balance sheet reduction in the second part of June

14 July 2020

Gilles Pradère

 

Swap operations users such as the ECB and BoJ, as well as banks repo facilities were not rolled with the full balance of the previous agreements. This has caused the Fed’s balance sheet to shrink by $86 billion from mid-June to month-end. More importantly, the asset purchase program continues at full speed, de facto further supporting financial conditions. 

Source: Bloomberg, RAM AI, as of 30.06.2020

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