Relevant:
- The dynamic central banking duo -- ECB balance sheet up over €3.1 trillion mimicking Fed balance that is close to $3 trillion. Shuffling toxic assets into darkness.
- Fed Balance Sheet Hits New Record At $2.55 Trillion As Bank Reserves Hit $1.3 Trillion All Time High
- Fed minutes show re-starting QE purchases already on the table
- The Fed has no endgame
- ECB Balance Sheet Hits Record $3.9 Trillion on History-Making Bank Loans
2019-09-19 — cnbc.com
Powell's comment that the central bank may have to start to organically grow the size of its balance sheet comes after officials said earlier this year that they were considering a new program that would allow banks to exchange Treasurys for reserves. Such a move, they hoped, would guarantee liquidity during difficult times but also would help the central bank decrease the size of its nearly $4 trillion balance sheet.
...
Powell's 2018 comments that the Fed's balance sheet reduction was on "autopilot" sparked a market meltdown that soured markets for much of the quarter. Since October 2017, the Fed has been allowing a set level of proceeds from Treasurys and mortgage-backed securities holdings to roll off each month.
Total capitulation.
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