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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 published with the permission of Snakehole Lounge- 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.

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

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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).

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Is The Fed suddenly paranoid about inflation?

 

 

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