-
Fed Balance Sheet QT: -$15 Billion in September, -$2.38 Trillion from Peak, to $6.59 Trillion
Total assets on the Fed’s balance sheet declined by $15 billion in September, to $6.59 trillion. This $15 billion decline was a mix of $24 billion of declines and $9 billion of increases: • $24 billion of declines spread over four accounts: • MBS: -$17 billion • Treasury securities: -$4 billion • Unamortized premiums: -$2 billion • Pandemic-era SPVs: -$1 billion • $9 billion of increases spread over two accounts: • Discount Window: +$3 billion • Accrued interest: +$6 billion Since the peak of its balance sheet in April 2022, the Fed’s QT has shed $2.38 trillion, or 26.5% of its total assets. In ... (full story)
- Comments / Top
- Subscribe
-
Related Stories
Fed's Williams: Balance Sheet Use Is Not Unconventional - Monetary Policy Tools Not Limited To Short-Term Rates - Uncertainty And Change Will Be With Us For Foreseeable Future - Central Bank Policy Works Better When Public Understands It Fed's Williams: Uncertainty and change will be with us for the foreseeable future 
Williams: Prepare for the Unexpected Thank you for the kind introduction. It’s a great honor to speak at this event recognizing our esteemed colleague and friend, Klaas Knot. As is often the case among central bankers, Klaas and I first met on a rubber raft floating down the Snake River in Wyoming’s Grand Teton National Park. It was August 2011. Klaas was a rookie monetary policymaker at the time, having been in his role as president of the Dutch National Bank for less than two months. I, on the other hand, was a relatively grizzled veteran with nearly six months under my belt as president of the San Francisco Fed. While we were leisurely cruising downstream, enjoying the wonderful views of nature, our raft suddenly came upon a black bear and two cubs who were—equally leisurely—crossing the river right ahead of us. Carefully, the raft pilot steered us near enough to the bears for close-up photos, but not so near as to get between the mama bear and her cubs—the one thing even a city slicker like me knows never to do. We didn’t appreciate it at the time, but this adventure was an omen for the many challenges we would face navigating the unexpected in the years to come.
Williams: Prepare for the Unexpected Thank you for the kind introduction. It’s a great honor to speak at this event recognizing our esteemed colleague and friend, Klaas Knot. As is often the case among central bankers, Klaas and I first met on a rubber raft floating down the Snake River in Wyoming’s Grand Teton National Park. It was August 2011. Klaas was a rookie monetary policymaker at the time, having been in his role as president of the Dutch National Bank for less than two months. I, on the other hand, was a relatively grizzled veteran with nearly six months under my belt as president of the San Francisco Fed. While we were leisurely cruising downstream, enjoying the wonderful views of nature, our raft suddenly came upon a black bear and two cubs who were—equally leisurely—crossing the river right ahead of us. Carefully, the raft pilot steered us near enough to the bears for close-up photos, but not so near as to get between the mama bear and her cubs—the one thing even a city slicker like me knows never to do. We didn’t appreciate it at the time, but this adventure was an omen for the many challenges we would face navigating the unexpected in the years to come.
Economic activity in the services sector was unchanged in September, say the nation's purchasing and supply executives in the latest ISM® Services PMI® Report. The Services PMI® reading of 50 percent was at the breakeven point between expansion and contraction for the first time since January 2010. The report was issued today by Steve Miller, CPSM, CSCP, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: “In September, the Services PMI® registered an unchanged reading of 50 percent, 2 percentage points lower than the August figure of 52 percent. The Business Activity Index moved into contraction territory in September, registering 49.9 percent, 5.1 percentage points lower than the reading of 55 percent recorded in August. This is the first time the index has entered contraction territory since May 2020. The New Orders Index remained in expansion in September, with a reading of 50.4 percent, down 5.6 percent from August’s figure of 56 percent. The Employment Index remained in contraction territory for the fourth month in a row and the fifth time in the last six months; the reading of 47.2 percent is 0.7 percentage point higher than the 46.5 percent recorded in August. “The Supplier Deliveries Index registered 52.6 percent, 2.3 percentage points higher than the 50.3 percent recorded in August and its highest reading since February (53.4 percent). This is the 10th consecutive month that the index has been in expansion territory, indicating slower supplier delivery performance. (Supplier Deliveries is the only ISM® PMI® Reports index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.) “The Prices Index registered 69.4 percent in September, a 0.2-percentage point increase from August’s reading of 69.2 percent. The index has exceeded 60 percent for 10 straight months, its longest such streak since 30 consecutive readings above 60 percent from October 2020 to March 2023. *US SEPT. ISM SERVICES PMI FALLS TO 50 FROM 52; EST. 51.7 - BBG *US ISM SERVICES BUSINESS ACTIVITY AT 49.9, LOWEST SINCE 2020 *US SEPT. ISM SERVICES PRICES PAID INDEX RISES TO 69.4 VS 69.2 ISM: US services sector growth down in September Economic activity in the United States' services sector continued to grow in September, but at a slower pace, the Institute for Supply Management (ISM) revealed in its report published on Friday. Compared to the previous month, the Services Purchasing Managers' Index (PMI) went from 52% to 50%, failing expectations. The Business Activity Index declined from 55% to 49.9%, entering the contraction territory. The Employment Index remained in contraction, but improved slightly, going from 46.5% to 47.2%. The New Orders Index decreased from 56% to 50.4%. The Supplier Deliveries Index improved from 50.3% to 52.6.% "Commentary in general indicated moderate or weak growth, with more isolated observations of supplier delivery challenges. Employment continues to be in contraction territory, thanks to a combination of delayed hiring efforts and difficulty finding qualified staff," Business Survey Committee Chair Steve Miller commented.
ISM: US services sector growth down in September Economic activity in the United States' services sector continued to grow in September, but at a slower pace, the Institute for Supply Management (ISM) revealed in its report published on Friday. Compared to the previous month, the Services Purchasing Managers' Index (PMI) went from 52% to 50%, failing expectations. The Business Activity Index declined from 55% to 49.9%, entering the contraction territory. The Employment Index remained in contraction, but improved slightly, going from 46.5% to 47.2%. The New Orders Index decreased from 56% to 50.4%. The Supplier Deliveries Index improved from 50.3% to 52.6.% "Commentary in general indicated moderate or weak growth, with more isolated observations of supplier delivery challenges. Employment continues to be in contraction territory, thanks to a combination of delayed hiring efforts and difficulty finding qualified staff," Business Survey Committee Chair Steve Miller commented.
FED'S LOGAN: INFLATION IS RUNNING ABOVE TARGET, TRENDING HIGHER LOGAN: WE NEED TO BE VERY CAUTIOUS ABOUT RATE CUTS LOGAN: MUST NOT EASE TOO MUCH, ONLY TO HAVE TO REVERSE COURSE pic.twitter.com/oHeHNL7qiY Fed's Logan: Inflation Is Running Above Target, Trending Higher - Have Seen Marked Decline In Payroll Gains - Risks On Both Sides Of Fed's Mandate - Recent Cut Was Insurance Against More Rapid, Non-Linear Decline In Labour Market - Demand Remains Pretty Resilient Fed's Logan: Policy isn't more than modestly restrictive, which is appropriate. Fed's Logan: Inflation on its way back to 2%, but there are risks. FED'S LOGAN: ‘VERY CLOSE’ TO MAXIMUM EMPLOYMENT
