The U.S. Federal Reserve released yesterday its weekly H.4.1 report on monetary aggregates. At the EU Business School Finance Club, we look at the key off-balance sheet item: the stock of U.S. Treasury securities belonging to other central banks, but held in custody at the Fed. Adding back domestic 'Fed credit', we obtain the EU Business School Finance Club Weekly Global Dollar Liquidity measure, now at $7.58 trillion:
| USD million | ||
| Custody holdings | $3,166,181 | -2.82% |
| Fed credit | $4,417,599 | -0.61% |
| Global Liquidity | $7,583,780 | -1.54% |
Custody holdings recovered by almost $9bn over the week. However, the post-election rally has stalled, courtesy (perhaps) of continued capital flight from China. At this point, we remain skeptical about any significant recovery in world GDP growth.
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