Balance Sheet
Case Study: QT1 (QT 2017-2019)
Here, we look at the last time the Fed tried to reduce the size of its balance sheet with QT, overview the mechanics of QT, and explain two ways in which QT can drain the RRP: via MMF repo and MMF becoming the marginal buyer of Treasury bills (something we've seen as of recently).
Post #159
808
DT Primers Fed Balance Sheet #primers This post details the components of the Fed balance sheet, how assets and liabilities interact with one another, and looks at each in a market context. We examine examples and several historical case studies. The Fed's weekly H.4…
