The Fed's Losses Are the Private Sector Gains

The amount of cash held by small domestically chartered commercial banks has reduced by over 50% since about a year ago. So I think you see deposits are going down across the banking sector as a result of QT. But the cash assets of banks really depends on which banks you're looking at. And so we could see a situation where you actually have smaller banks and maybe, you know, don't get as much of the institutional type flows through it coming under more pressure to raise funds in that manner.

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