Treasury Securities Archive

TIPS 5 year 5 years fwd

This used to be one of the Fed’s major concerns as they are steeped in inflation expectations theory. It could still signal a need to keep a modestly positive ‘real rate’ though the large ‘output gap’ is telling them otherwise. History says they’ll put most of the weight on the output gap, ...Read More

Re: fed’s action

> >     On Wed, Mar 12, 2008 at 8:40 PM, Davidson, Paul wrote > >     Warren: > >     Don’t you think it was a strange open market operation — >     where the Fed was moving Treasuries from their balance >     sheets to private balance sheets (even temporarily) — >     while accepting as ...Read More

Monetary ops

The larger point is that ANY assets banks are allowed to hold already have to be on the regulators approved list, and banks in any case can fund all their (legal) assets with with govt insured deposits. So why should another arm of government, the Fed, not always provide funding for the ...Read More