dharmatech

Correlation between Fed balance sheet changes and SPX

SP:SPX   S&P 500 Index
The United States Federal reserve publishes their balance sheet weekly, every Thursday at 4:30 ET.

Basically, when they add to their balance sheet , this is injecting money into the economy.

When they remove from their balance sheet , they are removing money from the economy.

This chart shows the recent adds and removes on the SP:SPX chart.

There appears to be a rough correlation.

Also shown are the FOMC meetings. Often, there has been upward pressure following a meeting and downward pressure following the minutes.

Here's a link to the Federal Reserve site where the changes are shown in a graph:

https://fred.stlouisfed.org/graph/?g=NXbd

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