“Anxiety in US financial markets has fallen to its lowest level on record, according to a widely-watched indicator, following the Federal Reserve (efforts) to facilitate strains in short-term borrowing with a massive injection of money. The St Louis Fed fiscal stress index dropped to minus 1.6 for the week ending January 17, it stated that week — the lowest reading since the indicator was made in the conclusion of 1993.”
“(The) US central bank has attempted to enhance the quantity of money in the financial system after an odd bout of volatility in the overnight market market, in which investors borrow money in exchange for high quality collateral such as US Treasuries. That prompted the Fed to devote buying $60bn of Treasury bills each month, restarting the growth of its balance sheet, which had steadily shrunk beneath its preceding ‘quantitative tightening programme.’“
https://newslagoon.com/pressure-index-sinks-to-new-low-as-fed-sedates-markets/773/This is very similar to an article appearing in the
Financial Times on 1/25/20. However, I was unable to link the (somewhat better written) FT article.
