The Bank Term Funding Program (BTFP) that was created by the Fed in March 2023 for troubled banks, as their illiquidity and insolvency became visible with the failure of Silicon Valley Bank, is showing an accelerating rate of usage by US banks.
Jerome Powell’s Fed signaling its policy reversal last week gains added context.
Best regards,
David Jensen
I received an 3.6% offer from HSBC for new money. So the money which is already there is of no use - too old maybe. As I never read before the term "new money" I thought "the Anglosaxons again..." - but in Germany my bank does the same (translated): "This 6 months offer is only valid for NEW MONEY". There are these many new terms: New money, turbo cancer, sudden death syndrom and we swallow them as if normal. Merry Christmas!
Holy moly.
No wonder Powell pivoted 180 degrees.
Looks like something big has broken.