Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
In other words, the US central bank is already way behind the curve on two key fronts.
Risk happens fast, especially when markets run on hopium with extended valuations. Whether today’s news headlines suggestive that Democrats may be opening an impeachment inquiry into President Trump will be a trigger […]
So the repo market has coniptions because it can’t fund the $1 trillion Government deficit anymore.
Because banks dont want to dump their Treasury postions all at the same time and crash the Treasury market.
So the Fed has to ride to the rescue and take on the burden of monetizing the deficit.
So QE4 starts now!
Nothing’s proven either way yet, but here’s why banks hold the key.
Where are the dealers? Policymakers at FRBNY would now like to know – even though it has been their one damn job for decades.
the takeaway from all of September should be the world’s two most important central banks each botching their “accommodations.”
Last week’s volatility in the market for fed funds gave a lot of equity managers an opportunity to brush up on their understanding of the workings of the short-term money markets.
Technology, like natural selection, has no goal.When it comes to the impact of automation (robots, AI, etc.) on jobs, there are two schools of thought: one holds that technology has always created more and better jobs than it destroys, and this wi…
It’s a dirty job and someone has to do it. May as well be me and I’ll make the bear case here as difficult as it is. And I say difficult, because […]