Thread by @QuisitiveInvest

Is anyone interested in how the Fed's balance sheet works? If yes, happy to write it up and provide the data and explanation.

Will provide brief summary anyway just for fun

1/ The fed buys assets (based on its mandate) and can provide funding (if needed) by creating digital reserves (i.e. free equity). They publish weekly balance sheets in the H.4.1 release, available here:
federalreserve.gov/releases/h41/c…

2/ Sorry, brief pause here. Have to aggregate, will update shortly

3/ had to truncate for purposes of conversation, but here is summary of fed balance sheet over time

"Total factors supplying reserves" is the assets the Fed buys.. so anything they buy sums into this line

So the bottom line of total factors absorbing federal reserve funds is the "money printing"

Any way, whats the Fed been doing in the past few weeks?

Fed has largely been buying treasuries (to keep interest rates low) and recently started buying mortgages

And now we are first seeing signs of the "main street" buying program

And near the bottom we can see some of the "alternative" programs at work, to the tune of a few hundred billion dollars

think i broke my own thread... DMs open, happy to discuss and share