Federal Reserve Bank of New York Feed Items

Henry Dyer, Michael Fleming, and Or Shachar

Editor’s note: The charts and figures presented in this post have been revised to correct for a minor coding error. The updated results are the same qualitatively and somewhat stronger quantitatively. October 8, 2025.

Trading activity in benchmark U.S. Treasury securities now concentrates on the last trading day of the month. Moreover, this stepped-up activity is associated with lower transaction costs, as shown by a smaller price impact of trades. We conjecture that increased turn-of-month portfolio rebalancing by passive investment funds that manage relative to fixed-income indices helps explain these patterns.

Michael Fleming

Standard metrics point to an improvement in Treasury market liquidity in 2024 to levels last seen before the start of the current monetary policy tightening cycle. Volatility has also trended down, consistent with the improved liquidity. While at least one market functioning metric has worsened in recent months, that measure is an indirect gauge of market liquidity and suggests a level of current functioning that is far better than at the peak seen during the global financial crisis (GFC).

Sophia Cho, Marco Del Negro, Ibrahima Diagne, Pranay Gundam, Donggyu Lee, and Brian Pacula 

Jaison R. Abel, Richard Deitz, Natalia Emanuel, and Benjamin Hyman

Marco Del Negro

Marco Del Negro 

Nina Boyarchenko and Leonardo Elias

Gizem Kosar, Davide Melcangi, and Sasha Thomas

The Federal Reserve Bank of New York’s July 2024 SCE Labor Market Survey shows a year-over-year increase in the average reservation wage—the lowest wage respondents would be willing to accept for a new job—to $81,147, but a decline from a series’ high of $81,822 in March 2024. In this post, we investigate how the recent dynamics of reservation wages differed across individuals and how reservation wages are related to individuals’ expectations about their future labor market movements.

Gara Afonso, Kevin Clark, Brian Gowen, Gabriele La Spada, JC Martinez, Jason Miu, and Will Riordan

Gara Afonso, Domenico Giannone, Gabriele La Spada, and John C. Williams 

Kinda Hachem

Richard Audoly, Miles Guerin, Giorgio Topa, and Roshie Xing

Andrew Haughwout, Donghoon Lee, Daniel Mangrum, Joelle W. Scally, and Wilbert van der Klaauw

Pablo D. Azar, Adrian G. Casillas, and Maryam Farboodi

Ben Hyman, Brian Kovak, and Adam Leive 

Thomas Klitgaard

Danial Lashkari and Jeremy Pearce

Editor’s Note: A revision of this post states the BLS labor productivity as sectoral output per worker. An earlier version had this as value added per worker. (November 12, 2024)

Marco Del Negro, Keshav Dogra, Pranay Gundam, Donggyu Lee, and Brian Pacula

Marco Del Negro, Keshav Dogra, Pranay Gundam, Donggyu Lee, and Brian Pacula

Guillaume Roussellet

Rajashri Chakrabarti, Natalia Emanuel, and Ben Lahey 

Sebastian Heise and Ayşegül Şahin

Viral V. Acharya, Nicola Cetorelli, and Bruce Tuckman

Viral V. Acharya, Nicola Cetorelli, and Bruce Tuckman

Viral V. Acharya, Nicola Cetorelli, and Bruce Tuckman

Traditional approaches to financial sector regulation view banks and nonbank financial institutions (NBFIs) as substitutes, one inside and the other outside the perimeter of prudential regulation, with the growth of one implying the shrinking of the other. In this post, we argue instead that banks and NBFIs are better described as intimately interconnected, with NBFIs being especially dependent on banks both for term loans and lines of credit.

Marco Del Negro, Pranay Gundam, Donggyu Lee, Ramya Nallamotu, and Brian Pacula

Kasey Chatterji-Len and Anna Kovner

Olivier Armantier

One of the core responsibilities of central banks is to act as “lender of last resort” to the financial system. In the U.S., the Federal Reserve has been operating as a lender of last resort through its “discount window” (DW) for more than a century. Historically, however, the DW has been plagued by stigma—banks’ reluctance to use the DW, even for benign reasons, out of concerns that it could be interpreted as a sign of financial weakness. In this post, we report on new research showing that once a DW facility is stigmatized, removing that stigma is difficult.

Patrick Douglass, Linda S. Goldberg, and Oliver Z. Hannaoui

Editor’s note: Since this post was first published, the note on the final chart has been corrected to reflect that, as depicted, gold shares are calculated based on national valuation (June 3, 2024, 9:00 am), and the text has been edited to clarify where the analysis refers to the authors’ sample (June 12, 2024, 1:29 pm).

Ken Armstrong, Asani Sarkar, and Leslie Conner Warren

Rajashri Chakrabarti, Dan Garcia, and Maxim Pinkovskiy

Nina Boyarchenko and Leonardo Elias

Firms’ access to credit is a crucial determinant of their investment, employment, and overall growth decisions. While we usually think of their ability to borrow as determined by aggregate credit conditions, in reality firms have a number of markets where they can borrow, and conditions can vary across those markets. In this post, we investigate how the composition of debt instruments on U.S. firms’ balance sheets has evolved over the last twenty years. 

Jaison R. Abel and Richard Deitz 

Martín Almuzara, Babur Kocaoglu, and Argia Sbordone

Jacob Weber

Andrew F. Haughwout, Donghoon Lee, Daniel Mangrum, Joelle Scally, Wilbert van der Klaauw, and Crystal Wang

Editor’s note: Since this post was first published, the aggregate credit card utilization rate cited in the second paragraph has been corrected. (May 14, 12:05pm). The percentage of Gen Z credit card users who are “maxed-out” has been corrected in the text and now matches the table. (May 15, 2024, 4:00 pm)

Gara Afonso, Gonzalo Cisternas, and Will Riordan  

A recent Liberty Street Economics post discussed who is borrowing and lending in the federal funds (fed funds) market. This post explores activity in two other markets for short-term bank liabilities that are often perceived as close substitutes for fed funds—the markets for Eurodollars and “selected deposits.” 

Felix Aidala, Gizem Kosar, and Wilbert van der Klaauw

One of the most striking features of the labor market recovery following the pandemic recession has been the surge in quits from 2021 to mid-2023. This surge, often referred to as the Great Resignation, or the Great Reshuffle, was uncommonly large for an economic expansion. In this post, we call attention to a related labor market change that has not been previously highlighted—a persistent change in retirement expectations, with workers reporting much lower expectations of working full-time beyond ages 62 and 67. This decline is particularly notable for female workers and lower-income workers.

Andrew Haughwout, Donghoon Lee, Daniel Mangrum, Belicia Rodriguez, Joelle Scally, and Wilbert van der Klaauw 

Jaison R. Abel, Richard Deitz, Jonathan Hastings, and Joelle Scally

Felix Aidala, Andrew Haughwout, Ben Hyman, Jason Somerville, and Wilbert van der Klaauw