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Does The Fed Report Its Transactions? Does It Buy Equities?

Got this question from one of you.

Quote

Does the Fed report what it’s bought (other than Treasury instruments)? Does it report whether it has bought equities and if so, how much?

And my answer-

Yes. It reports the operations every day. I post notifications on Capitalstool.com and on my Twitter page, but you can get them every day at 11 AM on the NY Fed website. They are also posted monthly in advance so that you know pretty much how much they will be buying every day.

If it bought equities it would report that, but they would first make an announcement of the policy in an FOMC statement. Can you imagine the uproar that would cause?

But the fact is that there’s almost no chance that will ever happen. The Fed operates through its proxies the Primary Dealers. Although the Fed doesn’t control them, it does influence them by making its wishes known every morning at their pre market meeting. They give the Fed part of what it wants, and a whole bunch of what it doesn’t want. We have a pretty good idea of what they do with the cash every week as I amply illustrate in the Fed Report. Their fixed income transactions are reported with a 10 day lag. They do not report their non-fixed income transactions, but I’ve figured out how to divine them via another data set that the Fed issues weekly, the H8.

It’s all in the Fed Report. Takes some time to become familiar with all the nuances, but after a few weeks you should get the hang of it!

Thanks for your support!

Lee

I would just add that you can stay up to date with the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, along with regular updates of the US housing market, in the Fed Report in the Professional Edition, Money Liquidity, and Real Estate Package. Try it risk free for 30 days. Don’t miss another day. Get the research and analysis you need to understand these critical forces. Be prepared. Stay ahead of the herd. Click this link and get in RIGHT NOW!

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