The Fed’s balance sheet expanded for the first time in three weeks, rising back over $2 trillion. Direct-bank lending rose after posting declines in the four previous weeks, though the increase was relatively small. A bigger contribution came from a more than $5 billion boost in the Term Asset Backed Securities Loan Facility, which is aimed at spurring consumer lending but hasn’t been used nearly as much as originally envisioned. The largest expansion in the balance sheet came through purchases of Treasurys, agency debt and mortgage-backed securities. The Fed started a program in March to ramp up such acquisitions in order to push down long-term interest rates low. Since that time the makeup of the balance sheet has shifted substantially, with less direct emergency lending to banks and more holdings of debt. Central bank liquidity swaps increased for the first time in 14 weeks, but still remain lower than crisis levels reached soon after the collapse of Lehman Brothers.
- ► 2013 (95)
- ► 2012 (129)
- ► 2011 (365)
- ► 2010 (478)
- This Is How I Feel About Comprehensive Exams
- Was I Wrong to Be Worried About Deflation?
- Obama's Realism
- When Walloons and Flemings Collide
- Neda Agha-Soltan
- If the Chinese Pop a Bubble, Does It Make a Sound?...
- More on Pirates!
- Religiosity and College Majors
- Blowing Bubbles
- Kenneth Arrow on Macroeconomics, Health Care, and ...
- Sentences I Liked
- Miss Teen South Carolina on Economics
- What I've been reading (July Edition)
- Show Some Love, Harvard Law School!
- Weekend Links
- What the U.S., China, Russia, and Turkmenistan Hav...
- More Evidence on the Effectiveness of Microfinance...
- Is China Really Pulling Away from American Debt?
- American Diplomacy and Public Opinion
- Obama's New International Poll Numbers
- The Fed's Balance Sheet
- US Treasury Cashes in
- What, Me Worry?
- Morning Links
- Politics =/= Magic
- Perception and Misperception in Trade Politics
- Who Gets E.U. Farm Subsidies (redux)?
- Quote of the Day
- Political Science and Economics Professors
- Video Time!
- How Soccer Illustrates Globalization
- It's Earnings Season!
- Thomas Schelling on Climate Change
- The State of Banking
- IR Theory and Rap Music
- FDI, Regulation, and Shifting Power Centers: China...
- How Not to Conduct Diplomacy
- The Pope on Development
- Some Things Get Better, Some Things Get Worse
- Obama's Summer Vacation
- Link Dump
- No G-8 Climate Change Deal
- The Data Do NOT Show the Paradox of Thrift
- Iran Organizational Chart
- Art Imitates Social Science
- Basel's Revenge
- The U.S. Plays Chicken with the BRICs
- We Hold These Truths to Be Self-Evident
- Straight Outta Lagos
- More Musings on Climate Change
- How to Destroy An Economy, in Five Easy Steps
- ▼ July (53)
- ► 2008 (134)
- ► 2007 (142)
Thursday, July 23, 2009
Posted by Alex Parets at 1:01 AM . Thursday, July 23, 2009