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Fed watch | Credit creation, cause and effect | February 15th 2023
The Federal Reserve buys and sells securities and sets interest rates. It targets borrowing costs, money creation, price stability, and productivity, with varying effects.
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Latest data: February 15th 2023
TLDR: This week, the Fed trimmed $5bn net from its Treasury security holdings and trimmed $153m net from its mortgage-backed security (MBS) holdings. The total amount of Reserve Bank credit shrank by $5bn net.
- The 10-year Treasury yield rose by 18bp to 3.81%
- The 30-year fixed-rate mortgage rose by 3bp to 6.12%
- The market expects the federal funds rate to peak at 5.25–5.5%
I also share this weekly update as a thread on Twitter if you prefer that.
•••
The Federal Reserve buys and sells securities
And sets interest rates
To influence: borrowing costs
Money creation
Price stability
And productivity
With varying effects
•••
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
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Valuabl (@ValuablOfficial) on X
Here's what happened to the monetary policy and economy this week:
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