Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

"Federal Home Loan Banks’ total advances to members had already more than doubled to $819 billion last year. And until the FHLBs ramped up issuance last week to support member institutions, volumes in the federal funds market — where FHLBs are the largest lender of overnight cash — had reached seven-year highs amid banks’ increased funding needs."

“The Fed doing its new emergency bank program and QT at the same time is totally contradictory policies,” said Michael Darda, chief economist at Roth MKM. “The Fed is now at cross purposes – working against itself. They are trying to support the banking system on one hand but on the other side they are doing things that will constrain it.”

The counter to the argument that Fed is sending mixed signals is that this new program is more akin to what the Bank of England did last year, when it bought government bonds to stabilize markets — an emergency action as opposed to a broad thrust of monetary policy."

https://finance.yahoo.com/news/fed-8-6-trillion-balance-151726666.html