USA, Liquidity - Economic Data Series | FRED (2024)

FAQs

What is the US liquidity Index? ›

This USD Liquidity Index composed of 2 parts, total assets and major liabilities of the Federal Reserve . There is a certain positive correlation between USD liquidity and risk asset price changes in history.

The cash ratio is the most conservative measure of liquidity, calculated by dividing cash and cash equivalents by current liabilities.

FED Net Liquidity : 6153.59 (As of 2024-06-19)

FED Net Liquidity was 6153.59 as of 2024-06-19, according to Net Liquidity. Historically, FED Net Liquidity reached a record high of 7137.1 and a record low of 1181.737, the median value is 4030.072. Typical value range is from 3 to 6. The Year-Over-Year growth is -0.37%.

Liquidity is the risk to a bank's earnings and capital arising from its inability to timely meet obligations when they come due without incurring unacceptable losses. Bank management must ensure that sufficient funds are available at a reasonable cost to meet potential demands from both funds providers and borrowers.

Whereas the United States did experience a liquidity trap in the period 2009/10, i.e. in "the immediate aftermath" of the crisis, the critics of the mainstream definition claim that, after that period, there is no more of any kind of a liquidity trap since government and private-sector bonds are "very much in demand".

Generally, a good Liquidity Ratio should be above 1.0. This indicates the company has enough current assets to cover its short-term liabilities. A higher Liquidity Ratio (above 2.0) shows the company is in a stronger financial position and may have spare cash available for investments or other opportunities.

Common liquidity ratios include the quick ratio, current ratio, and days sales outstanding. Liquidity ratios determine a company's ability to cover short-term obligations and cash flows, while solvency ratios are concerned with a longer-term ability to pay ongoing debts.

Current, quick, and cash ratios are most commonly used to measure liquidity.

EUR/USD (Euro/US Dollar): The EUR/USD currency pair is undoubtedly the most traded and liquid pair in the forex market. It represents the exchange rate between the euro, the official currency of the Eurozone, and the US dollar, the world's primary reserve currency.

What is the current global liquidity level? ›

Global liquidity has hit a record US$170.8tr. This compares to the 2023 average of US$166.6tr and the current cycle-low of US$158.8tr recorded in October 2022.

Current liquidity is the total amount of cash and unaffiliated holdings compared with net liabilities and ceded reinsurance balances payable. Current liquidity is used to determine the amount of an insurance company's liabilities that can be covered with liquid assets, such as cash and cash equivalents.

In this section we identify and define three main types of liquidity pertaining to the liquidity analysis of the financial system and their respective risks. The three main types are central bank liquidity, market liquidity and funding liquidity.

Investment banks often have market making operations that are designed to generate revenue from providing liquidity in stocks or other markets. A market maker shows a quote (buy price and sale price) and earns a small difference between the two prices, also known as the bid-ask spread.

What is the Liquidity Index? The liquidity index calculates the days required to convert a company's trade receivables and inventory into cash. The index is used to estimate the ability of a business to generate the cash needed to meet its current liabilities.

The liquidity index is defined as a ratio of the difference between the natural water content of a soil and plastic limit to the plasticity index. The liquidity index is also known as the water plasticity ratio.

Dollar volume liquidity is a stock's share price multiplied by its daily share volume. High dollar liquidity makes it easier for institutional traders to buy or sell in large dollar amounts without moving the price substantially.

The "US Net Liquidity" indicator offers a detailed analysis of liquidity conditions within the United States, drawing insights from critical financial metrics related to the Federal Reserve (FED) and other government accounts.