Bank Term Funding Program (BTFP)

Closes today and it might be a rough road ahead.

The BTFB was created in 2022 when interest rate rises pushed down the market value of Treasuries. Higher than usual cash withdrawals forced banks to sell assets at a loss. Could still be a need for this as current balances at the BTFB is over $160 billion:

https://www.msn.com/en-us/money/markets/us-banking-sector-draws-speculation-amid-btfp-closure/ar-BB1jDFt8

Powell warns of bank failures:

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