The Fed has capitulated – daily swap lines introduced as Bitcoin feeds off liquidity

Quick Take

  • The fed and five central banks have just announced to enhance liquidity via USD swap lines.
  • The other five central banks are the Bank of England, the Bank of Canada, the European Central bank, the Swiss National Bank, and the Bank of Japan.
  • Swap line operations with the fed will now be daily instead of weekly
  • Distressed banks can now get liquidity (dollars) from the fed daily.
  • The result is balance sheet expansion — billions if not trillions of liquidity incoming in the short-medium term.
Press release: (Source: ECB)
Press release: (Source: ECB)

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Source: https://cryptoslate.com/insights/the-fed-has-capitulated-daily-swap-lines-introduced-as-bitcoin-feeds-off-liquidity/