Here’s another nugget of intelligence for you. The Fed balance sheet numbers came out showing another SHARP drop in currency swap usage last night - from $46 Billion last Thursday to $32 Billion yesterday. And there has been a steady decline since March 1st when we were at $107 Billion.
And then there’s the brain drain at the Fed’s New York trading operations. Brian Stack is leaving the Fed’s Markets Group. Stack is a key staffer who played a major role in the expansion of the Fed’s balance sheet. Stack is an economist by trade, with a Ph.D. from MIT. New York Fed President William Dudley said, “Brian’s service to the Bank over the past three years has been critical to our response to the financial crisis and the country’s economic recovery.”
My WAG is that The Fed really sees less danger in the U.S. economy.
What’s WAG? Really? Really! Okay, ‘W’ stands for wild. ‘G’ stand for guess. And ‘A’ stands for something that I have been called on more than one occasion.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury