Calafia Beach Pundit submits:
The Fed continues to expand bank reserves (first chart), but its balance sheets remains relatively unchanged in aggregate over the past year (second chart, source here). Further, as seen in the second chart, the Fed has bought enough Treasury bonds by now to replenish what it “lost” in last year’s panic, flight-to-quality. They will continue to buy agency and mortgage-backed securities, but these purchases will likely be offset by declines in the “other” Source: Seeking Alpha RSS Feed
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