How Much Free Taxpayer Money is the Fed Giving to Banks? - Mish Talk


Reserve balances, reverse repos, and interest rate paid to banks from St. Louis Fed, chart by Mish.

Chart Notes

  • Data reflects end of month numbers. The latest reserve balance is from the New York Fed. The rest of the numbers are via a St. Louis Fed download. 
  • Note the stairstep pattern on interest paid on reserves. The interest rate rises every time the Fed hike rates. 
  • Due to Quantitative Tightening (QT), reserve balances at the Fed have slowing been declining every month. 


Image and article originally from Read the original article here.

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