A potential funding stress indicator linked to the Fed's shrinking balance sheet is issuing early warnings. According to the latest data released by the Fed, intraday overdraft levels skyrocketed earlier this year, meaning banks withdrew more funds than they had in their Fed accounts. This is a worrying sign for some on Wall Street, as it reflects a situation similar to the one in September 2019 in the US financing market turmoil, although it is not as extreme as it was then. "The Fed's intraday overdraft level is an important early warning signal of potential liquidity stress on the eve of the September 2019 repo market crisis," Wrightson ICAP economist Lou Crandall wrote in a report, "Given this history, we are somewhat concerned about the first quarter data recently released."
衡量美国融资市场稀缺性的关键指标发出预警 专家警惕2019年钱荒重演
The key indicator measuring the scarcity of the US financing market has issued a warning. Experts warn of a potential repeat of the money shortage in 2019.
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