3 ms·

Ended; but there's still about $8T on the books of past QE right? https://www.businessinsider.com/personal-finance/quantitative-easing https://www.businessinsi

• JumpCrisscross 4y ago
  > there's still about $8T on the books of past QE right? Yes, about $8.8tn [1]. The Fed is running them off at about $60n a month [2]. (The Fed's optimal balance sheet is estimated to be around $4tn [3].) The elephant in the room is the Fed's mortgages [4][5]. Those will have to start being sold soon, since rising rates mean mortgagers aren't refinancing and thus a run-off strategy doesn't reduce holdings. [1] https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren... [2] https://www.federalreserve.gov/newsevents/pressreleases/monetary20220504b.htm https://www.federalreserve.gov/newsevents/pressreleases/mone... [3] https://advisors.vanguard.com/insights/article/thefedsplantoshrinkitsbalancesheetquickly https://advisors.vanguard.com/insights/article/thefedsplanto... [4] https://www.ft.com/content/1a2e829e-de82-4083-abcb-ceeb46a456c4 https://www.ft.com/content/1a2e829e-de82-4083-abcb-ceeb46a45... [5] https://fred.stlouisfed.org/series/WSHOMCB https://fred.stlouisfed.org/series/WSHOMCB
  • bombcar 4y ago
    The sparks will really fly when they begin to require FNMA and FHLMC conforming loans be assumable.