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Fed watch | Credit creation, cause and effect | March 15th 2023
The Federal Reserve buys and sells securities and sets interest rates. It targets borrowing costs, money creation, price stability, and productivity.
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Latest data: March 15th 2023
TLDR: Last week, the Fed trimmed $969m net from its Treasury security holdings and trimmed $186m net from its mortgage-backed security (MBS) holdings. The Fed also lent $142bn to banks to sure up their liquidity.
- The 10-year Treasury yield fell by 47bp to 3.51%
- The 30-year fixed-rate mortgage rose by 8bp to 6.73%
- The market expects the federal funds rate to peak between 5–5.25%
I also share this weekly update as a Twitter thread if you prefer.
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The Federal Reserve buys and sells securities
And sets interest rates
It targets borrowing costs
Money creation
Price stability
And productivity
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Sources
- Fed balance sheet h.4.1 weekly releases - federalreserve.gov/releases/h41/
- Raw data - fred.stlouisfed.org
- My newsletter - valuabl.substack.com
Notes
- I will update this data weekly, usually Friday morning British time
- Let me know in the comments if you would like something changed or added
- I also share this weekly update as a thread on Twitter if you prefer that
The rate chart is interesting. I’m surprised people only think we will be at the peek rate for a month or two.
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