Despite the NY Fed disclosing recently that Repo Madness averages (means that some days it’s a lot higher) $190 billion dollars per day and not $120 billion dollars per day, the US Dollar Index is rallying and back over 98. The Fed’s official balance sheet increased another $20 billion dollars in the last week. It’s now increased $72 billion dollars in just the last 2 weeks and $279.5 billion dollars since the end of August 2019! About 5 months of Fed QT (balance sheet reduction) has now been reversed in barely 2 months!
NY Fed Speech given by Lorie K. Logan, Senior Vice President of the NY Fed at the Annual Primary Dealer Meeting, Federal Reserve Bank of New York https://www.newyorkfed.org/newsevents…
Track the Fed’s official balance sheet (updated on Thursdays) here: https://fred.stlouisfed.org/series/WALCL