Once your home equity loan is approved, you'll be sitting on a pile of cash. And depending on your plans, those funds may be in standby mode for several weeks or months. However, letting your cash sit idly could mean missing out on interest earnings in the meantime. So, here's how to maximize the earnings on your home equity loan money until you're ready to spend it. Step 1: Consider your time horizon The lump sum you're given at closing on a home equity loan is likely to be quite sizable. You may int ...

Federal Reserve Chair nominee Kevin Warsh has several paths toward reducing the central bank’s $6.6 trillion balance sheet but the process will be costly and lengthy, Wall Street strategists say. Warsh has called for dramatically paring the Fed’s massive financial footprint, rekindling the debate around the size of its portfolio which swelled after successive rounds of crisis-driven asset purchases. Minutes from the January policy meeting due Wednesday are likely to offer insights on policymakers’ latest ...

Core Viewpoint - The Federal Reserve is set to continue significant Treasury bill purchases into the spring, with uncertainty regarding actions post the annual tax filing deadline in mid-April [1][5]. Group 1: Treasury Bill Purchases - The Federal Reserve is currently purchasing approximately $40 billion per month in Treasury bills and other short-term government bonds to rebuild reserves and manage liquidity as the tax filing date approaches [3][4]. - The overall System Open Market Account (SOMA) holdings have reached $6.2 trillion, indicating a substantial level of asset management by the Fed [3]. Group 2: Future Outlook - Fed officials expect the current elevated levels of purchases to continue until mid-April, after which a significant reduction in purchase amounts is anticipated [4][5]. - Post mid-April, the monthly purchase amounts will likely fluctuate based on the outlook for reserves supply and demand, as well as market conditions [5].

(Bloomberg) -- Federal Reserve Chair nominee Kevin Warsh is likely to take a gradual approach to shrinking the central bank’s $6.6 trillion portfolio to avoid rekindling money market tensions, according to strategists at Citigroup Inc. Any attempt by the central bank to resume unwinding its balance sheet — a process known as quantitative tightening — could revive pressures in the $12.6 trillion repurchase market, the strategists said. The Fed abandoned the process in December after rates in the repo market ...

And that was exactly what the 1951 agreement brought to an end. The Fed had capped both short- and longer-dated Treasury yields during World War II and its aftermath to hold down federal borrowing costs. That recipe caused postwar inflation to soar, however. The Truman administration — in a watershed moment that crystallized the Fed’s autonomy over monetary policy — then agreed to let policymakers set rates on their own.“Rather than insulating the Fed, it could look more like a framework for yield-curve con ...

Fox Business/YouTube Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. In 2024, the momentum in the U.S. stock market appeared relentless. After a remarkable surge of approximately 26% in the S&P 500 in 2023, the index climbed another 36% in 2024, despite some temporary setbacks earlier in the year. Amid this bullish backdrop, Jim Grant, editor of Grant’s Interest Rate Observer, issued a pointed caution for investors, suggesting that they consider the po ...

Core Insights - The Federal Reserve's balance sheet experienced significant year-end liquidity shifts, with the Standing Repo Facility (SRF) spiking to $75 billion before falling back, and Overnight Reverse Repos (ON RRPs) reaching $106 billion before also declining [1][14][15] Group 1: Standing Repo Facility (SRF) - The SRF saw a one-day uptake of $75 billion on December 31, which increased the Fed's total assets temporarily [6][7] - By January 2, the SRF balance fell back to $23 billion, with expectations that it will approach zero in the following week [6][7] - The SRF allows approved counterparties, primarily large broker-dealers and banks, to borrow overnight at a rate of 3.75%, enabling them to profit from lending in the repo market [11][12] Group 2: Overnight Reverse Repos (ON RRPs) - ON RRP balances spiked to $106 billion on December 31, reflecting a significant influx of funds from money markets depositing at the Fed [14] - By January 2, ON RRP balances dropped to just $6 billion, indicating a rapid unwinding of year-end liquidity [14] Group 3: Treasury Bills and Balance Sheet Management - The Fed added $38 billion in short-term Treasury bills in December, with $15 billion replacing mortgage-backed securities (MBS) that came off the balance sheet [2][19] - The Fed's strategy aims to shift its balance sheet composition towards shorter-term securities, with T-bills expected to grow while MBS are phased out [18][23] - The Fed's total assets rose by $104 billion to $6.64 trillion, largely due to the SRF spike and Reserve Management Purchases (RMPs) [27] Group 4: Mortgage-Backed Securities (MBS) - MBS holdings fell by $15 billion in December to $2.04 trillion, with the Fed's plan to continue reducing MBS until they are eliminated [23][24] - The decline in MBS is primarily due to reduced pass-through principal payments as mortgage refinancing and sales have decreased significantly [24][25]

Core Viewpoint - The Federal Reserve is initiating Treasury bill purchases exceeding $200 billion over the next 12 months to alleviate pressures in money markets, with an average expectation of net purchases around $220 billion from survey respondents [1][3]. Group 1: Federal Reserve Actions - The Fed decided to commence Treasury bill purchases after identifying that reserves in the financial system had fallen to levels deemed insufficient, as indicated by rising short-term funding costs [2]. - The Fed plans to buy approximately $40 billion of T-bills monthly, having already purchased about $38 billion this month, with additional operations scheduled for January [4]. - The decision to halt the reduction of its balance sheet, known as quantitative tightening, was made in response to increasing signs of stress in the $12.6 trillion repurchase agreement market [6]. Group 2: Market Conditions - Rising money market rates have been observed, increasing more rapidly compared to the Fed's administered rates than during the previous balance-sheet unwinding period from 2017 to 2019 [5]. - Concerns have been raised regarding inadequate liquidity potentially disrupting essential financial market functions, which could undermine the Fed's rate-setting capabilities and lead to broader market implications [7]. Group 3: Reserve Management Strategy - The December meeting minutes revealed discussions among Fed officials on targeting an appropriate level of bank reserves, with some suggesting a focus on money-market rates relative to interest on reserve balances rather than a specific reserve level [8].

Core Viewpoint - The government plans to issue bonds worth 200 billion kr. in 2026, with a focus on a new nominal bond maturing in 2029, influenced by market conditions [2] Group 1: Government Bond Issuance - The estimated market value for government bond issuance in 2026 is 200 billion kr. [2] - A new nominal bond is planned for issuance, maturing in 2029, with the amount sold in benchmark series dependent on market conditions [2] Group 2: Borrowing Needs and Alternatives - The Treasury's borrowing needs for 2026 may also be met through the issuance of Treasury bills [2] - Other potential sources include drawdowns of foreign deposits in the Treasury's current account with the Central Bank of Iceland and the sale of a portion of the Housing Fund's loan portfolio [2]

The US Treasury Department on Friday announced it would proceed with its sales of Treasury bills and coupons in December as previously scheduled. The announcement follows President Donald Trump’s order to close the federal government on Christmas Eve and the day after Christmas. Most Read from Bloomberg “Treasury confirms that it will maintain its anticipated schedule for auctions and announcements on Wednesday, December 24, 2025,” the department said in a statement. “Maturities and settlements on Fri ...