SCHR - What The Fed Is Doing: Perception Vs. Reality
Editor's note: Originally published at tsi-blog.com on February 26, 2019.
Based on the par value of maturing securities on its balance sheet, there was scope for the Fed to withdraw as much as $43 billion from the financial markets on 15th February. A week ago, we noted that this "liquidity drain" had no effect on the stock market, possibly because the effect would occur on the next trading day (Tuesday, 19th February) or because the Fed chose to withdraw a lot less money than it could have. Now that the Fed has issued its latest