In the interests of transparency at The ‘New’ Federal Reserve, The St.Louis Fed has decided, suddenly and without warning, to discontinue the production of The Fed’s balance sheet size from its FRED website.
And while the data is still available on various data terminals and The New York Fed SOMA site continues to provide the updates, we can’t help but wonder why the government would decide that this data series – one that is simple to report, readily available from the source, and requires very little manpower to produce – would suddenly be discontinued from one of the most popular, publicly accessible, and free US government data repositories?
Perhaps it is because the pace of balance sheet normalization is about to take a huge step larger – from around $30bn to around $50bn per month in the next quarter…
Or perhaps its because if ‘average joes’ accessing FRED can see the normalization accelerating and will notice that the SMART money is piling out of the stock market – and selling to the greater fools chasing momo…
Or more likely, Gluskin Sheff’s David Rosenberg is right: “Don’t fight the Fed works in both directions…”
The NYSE comp is lower today than it was on Nov 28, even with the FAANG stocks! Nothing to show for 7 months except the nausea from all the roller coaster rides in a yr where the thematic is one of volatility and multiple compression. Don’t fight the Fed works in both directions.
— David Rosenberg (@EconguyRosie) July 4, 2018