Friday, December 6, 2019

Treasury and Fed attempting to coordinate monetary policy

They are going to add a lot of Reserves to Depositories next week:

Treasury ops adding about 38B Tues+Thurs and Fed adding another 25B via new operation Monday... 20B social security Weds... maybe 75Bish total... then it will all quickly reverse with qtrly taxes due on Monday the 16th... might bring total Reserves at Depositories closer to 1.7T by end of week...