As we amble into what is bound to be a languorous trading environment until next Monday morning, here are the updated charts from the Fed. QT continues apace, with Fed Assets approaching the levels of four years ago:
The Reverse Repo has also plunge.
Yellen’s bank rescue package from March 2023, ostensibly set to disappear by next March, has been partly paid back, but there’s still a hefty balance due from the weakest banks.
Lastly, the calculated “Fed Spread” suggests the market is wildly overpriced right now, as it has been for, well, a very long time.
