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So Much for “Temporary” REPO Operations By FED

Finally we have the plans for repurchase operations by the FED for the next month.

As far as I can tell there is little change until the middle of February, when the 14 day repo will be trimmed down to the $30 billion area from the prior $35 billion area.

You can see the plans here if you have an interest.

As I mentioned a couple days ago this new schedule pretty much dovetails with what I expected–previous baloney from the FED on temporary repurchase operations is just that–BALONEY! I think we are going to see these ongoing through the year.

We will watch this in conjunction with the Quantatative Easing that the FED is doing to see what happens overall to the balance sheet–any reduction in assets on the balance sheet for longer than 1-2 weeks is likely to be met with a ‘tantrum’.

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