Emergency lending to banks boosted overall Fed holdings, size of balance sheet
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Late Thursday, Reuters reported that Federal Reserve emergency lending to banks, which hit record levels the last week, remained high in the latest week, amid continued large scale extensions of credit to the financial system, which now includes official foreign borrowing.
“Borrowing from the Fed caused the size of its overall balance sheet to move to $8.8 trillion from $8.7 trillion the prior week,”
The news increase market’s fears of more Fed rate hikes and banking crisis, which in turn could be linked to the latest rebound in the US Treasury bond yields and the US Dollar from the recent troughs.
Also read: Forex Today: The Dollar says hello as Wall Street’s rally fades
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