This is a syndicated repost published with the permission of Confounded Interest – Online Course Notes for Financial Markets. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
Like every Thursdays afternoon, The Fed of New York announced their balance sheet holdings. Unlike the anticipated unwind that Janet Yellen had been promising, The Fed actually INCREASED their holdings of US Treasury Notes and Bonds and increased their holdings of Agency MBS.
Did The Fed unwind anything? Yes. They dumped $2.63 BILLION of Treasury Inflation-Protected Securities (TIPS).
Did The Fed just surrender on the inflation front? The Battle of The SOMH?
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