Subscribe to All American Investor via EmailThe FED is allowing securities to roll off the books. If this trend continues it won't be long before you start to see rates in the short end move up.
The massive anti-depression ease is coming to an end. I doubt that this will happen fast, but it looks like the easy money for the banks could be nearing an end.
Reserve Bank credit is the sum of securities held outright, repurchase agreements, term auction credit, other loans, net portfolio holdings of Commercial Paper Funding Facility LLC, net portfolio holdings of LLCs funded through the Money Market Investor Funding Facility, net portfolio holdings of Maiden Lane LLC, net portfolio holdings of Maiden Lane II LLC, net portfolio holdings of Maiden Lane III LLC, float, central bank liquidity swaps, and other Federal Reserve assets.
