Federal Reserve Balance Sheet Hits $8 Trillion.

The Houston Courant ^ | 6/28/21 | Houston Courant

[The Houston Courant]

In June, the Federal Reserve disclosed its balance sheet to have passed $8 trillion in assets for the first time in its 108-year history. The holdings illuminate the increasing role the central bank is playing the economy as the United States weathered the 2008 financial crisis and COVID-19. As the economy continues to show signs of strength the Federal Reserve signaled that a reversal in loose monetary policy may be ahead.

In a hearing with the U.S. House select subcommittee on COVID-19, Federal Reserve Chairman Powell expressed that the U.S. economy is on the rise with increased hiring and spending. “The housing sector is strong and business investment is increasing at a solid pace,” Powell said to the committee.

Though he painted an optimistic picture, Powell did temper his comments with an acknowledgement of elevated inflation. “Inflation has increased notably in recent months,” adding further he expects these to be temporary as supplies of goods return to normal levels. “We will not raise interest rates pre-emptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances.”

In early June, the Fed announced via press release a winding down of its portfolio of temporary COVID-19 corporate credit facilities, among the first of indications that changes are ahead.

[Toddsterpatriot]

I have ten years as a senior executive in a bank.

And you think your bank has a Net Interest Margin near 0.15%? Weird.

I am not here to do your research.

Or your own.

Net Interest Margin Contracted Further to a New Record Low:
The average net interest margin contracted 57 basis points from a year ago to 2.56 percent—the lowest level on record for the Quarterly Banking Profile. Net interest income fell by $7.6 billion (5.6 percent) from a year ago. The year-over-year reduction in yields on earning assets outpaced the decline in average funding costs, both of which are at record lows. Despite the aggregate decline in net interest income, which was driven by the largest institutions, more than three-fifths of all banks (64.4 percent) reported higher net interest income compared with a year ago.

https://www.fdic.gov/news/press-releases/2021/pr21048.html

FDIC says the Q1 average was 2.56%.

You were a bit off, eh?