macroeconomics

Carrying the identity built in Part 1 — ΔReserves = ΔSOMA + ΔLending facilities − ΔTreasury TGA − ΔRRP — this part traces where liquidity moved from March 2022, when the Fed began hiking, through 2024, across five regimes. 1. March–May 2022 (Equities → RRP) The Fed's 2022 hikes pushed liquidity out of equity