The Fed may provide as much as $2 trillion in liquidity relief for banks after the SVB collapse, JPMorgan says
MarketsInsider/Filip DeMott/3-17-2023
“‘The usage of the Fed’s (Bank Term Funding Program) BTFP is likely to be big,’ JPMorgan analysts said.”
USAGOLD note: We blinked a couple of times when we saw that number……Unless the Fed accounts for the new liquidity injection differently, the $2 trillion amounts to a 25% addition to its balance sheet (from $8 trillion to $10 trillion.) I don’t think most investors know the scope of this bailout.
Sources: St. Louis Federal Reserve [FRED], Board of Governors of the Federal Reserve System
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