Central banks talk a tough game regarding quantitative tightening, but in 2023, we are seeing balance sheet expansion (quantitative easing).

The new fed programs may not be directly QE related, but we see significant balance sheet expansion from the Fed, People’s Bank of China, and the European Central Bank.

ECB is now the latest central bank to have a positive balance sheet YTD, +0.16%, back-to-back weeks of expanding the balance sheet.

In the case of the ECB, they are taking more from credit lines from the Fed. They join the People’s Bank of China (PBoC) +1.39% and the Fed +2.66%, in terms of balance sheet expansion.

(by James Van Straten)