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Fed Liquidity Is Back, the Private Sector Is Deleveraging (Kind Of), and Wages Are Falling Behind
The Fed has reversed course, expanding its balance sheet by roughly $105 billion since early December - the largest increase since the 2023 regional banking crisis. More liquidity is back in play, a change that historically has coincided with easier financial conditions, higher risk-taking, and pockets of excess across asset markets. What you need to know: The Fed’s balance sheet has expanded by roughly $105 billion since early December, its largest jump since the 2023 regional banking crisis, a clear sign that liquidity is easing again. Why it matters: For the first time in nearly three years, the Fed is expanding ... (full story)
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Kainarder
Jan 10, 2026 6:03am
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Jan 10, 2026 3:53am
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A drop in the unemployment rate may ease concerns at the U.S. central bank about labor market weakness, with traders betting Federal Reserve Chair Jerome Powell has delivered his last interest rate cut before his term ends in May and leaving any further policy easing in the hands of whomever President Donald Trump taps as Powell's successor. The ...
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