Fed's New BTFP Facility Is Stealth QE Injecting Up To $2 Trillion In Liquidity, JPMorgan Concludes

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by Tyler Durden
Thursday, Mar 16, 2023 - 10:35 PM

At 4:30pm ET today, the Fed will publish its weekly H.4.1 report, which while not as relevant to commercial bank balance sheets (and their bank runs) as the weekly H.8 report - recall what we tweeted recently...

... will reveal key Fed balance sheet data, including a closely-watched update on the Fed's brand new bank bailout facility, the Bank Term Funding Program (BTFP), a facility designed to avoid banks that are facing deposit outflows from being forced to sell their bond holdings at a loss. This is achieved by the Fed accepting eligible collateral at par (even if the market price of the collateral is pennies on the dollar), which at the same time maximizes the capacity of banks to borrow from this lending facility.