- MarketWatch – Caroline Baum: What’s propelling stocks higher? Not the Fed’s balance-sheet expansion
Ultra-low interest rates in the developed world play a bigger role than the Fed’s Treasury bill purchases
The idiosyncracies of the Fed’s balance sheet seem more arcane and less relevant to the average investor than the well-publicized benchmark rate. So if there’s a motivator for the stock market rally, the persistently low level of interest rates, not the expanding balance sheet, would seem to be the more likely culprit.
- Dow Jones News Service – (December 28, 1999) CASH IS FLOWING LIKE CHAMPAGNE FOR Y2K
The volume of cash that the Federal Reserve has temporarily given to banks to avert potential Year 2000 strains is rising to dizzying levels. Including nearly $20 billion it gave to the banking system in the form of term “repurchase” agreements Monday, the Fed has almost $100 billion in hard currency loans outstanding to banks. That’s the most money lent out through repurchase agreements ever, said Peter Bakstansky, spokesman for the New York Federal Reserve. For some perspective, the Fed had $23 billion in outstanding “repos” in December 1998, and around $9 billion in December 1997.