Since June 2022, the Fed has allowed more than $1 trillion of bonds to mature from its portfolio, including roughly $840 billion of Treasuries.
QT drains liquidity from the banking system, reducing bank reserves parked at the Fed and cash stashed in its reverse repo facility.
Others believe money market rates will start to move up in ways suggesting the system is short of cash.
A New York Fed report in April projected an end to QT around the middle of 2025.
A survey of major banks by the New York Fed released in August eyed an end to QT in mid-2024.
Persons:
it's, ”, Kathy Bostjancic, Bostjancic, Goldman Sachs, Loretta Mester, “, Austan Goolsbee, Mary Daly, Michael Barr, Michael Cloherty, Mark Cabana, ” Cabana, Cabana, Michael S, Ann Saphir, Dan Burns, Andrea Ricci
Organizations:
Goldman Sachs, Federal Reserve, Silicon Valley Bank, Fed, Treasury, Reuters Graphics Reuters, Cleveland Fed, Bloomberg, Chicago Fed, San Francisco Fed, UBS, Bank Policy Institute, New York Fed, Bank of America, Daily, Derby, Thomson
Locations:
Silicon, Washington