Fed Unwinds Balance Sheet By $21 Billion! But Increases Floating-rate Note (FRN) and TIP Holdings By $3.84 Billion (Paranoid About Inflation?)

This is a syndicated repost courtesy of Snakehole Lounge- Online Course Notes for Financial Markets. To view original, click here. Reposted with permission.

The Federal Reserve announced today that they unwound $21 billion from their $4.4 trillion balance sheet.


The Fed redeemed $14.64 billion of T-Notes and T-Bonds and $10.31 billion of Agency MBS. But purchased $1.93 billion of US Treasury Floating Rate Notes (FRN) and $1.91 billion of  US Treasury Inflation-Protected Securities (TIPS).


Is The Fed suddenly paranoid about inflation?



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