my understanding is they are not actively selling, they just are not

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Jun 14, 2022
3:14:08pm

Gente_Boa All-American

my understanding is they are not actively selling, they just are not

repurchasing renewing securities. Until as recently as last month for every Bond they held that matured they were re-buying it to keep their balance sheet at the same level. Now they are not re-buying maturing securities but they are still not actively selling.

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Gente_Boa

Bio page: Gente_Boa
Joined: May 6, 2013
Last login: Apr 27, 2024
Total posts: 4,406 (19 FO)

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Messages

Author

Time

Yes, the Fed was way too late on rate increases, but the bigger issue is their

Gente_Boa

6/14/22 2:58pm

What would be the impact on mortgage rates if they rapidly dumped these assets?

PROBcoug

6/14/22 3:01pm

Spike

Big Daddy D

6/14/22 3:02pm

Less demand for MBS, rates go up

Backcountry

6/14/22 3:21pm

It reduces available credit in the economy and drives up interest rates even

Skeptical Optimist

6/14/22 3:22pm

RE: Yes, the Fed was way too late on rate increases, but the bigger issue is

WDaddy

6/14/22 3:03pm

They are SLOWLY starting to do that. They will only have sold off $100B by end

BYU-Ite

6/14/22 3:03pm

my understanding is they are not actively selling, they just are not

Gente_Boa

6/14/22 3:14pm

This is correct.

Skeptical Optimist

6/14/22 3:16pm

That makes sense. Thanks for the clarification!

BYU-Ite

6/14/22 3:27pm

It's a little faster than that. $47.5B per month for June-August, then $95B per

Skeptical Optimist

6/14/22 3:14pm

Also makes sense. Thanks!

BYU-Ite

6/14/22 3:28pm

RE: Yes, the Fed was way too late on rate increases, but the bigger issue is

panacablue

6/14/22 3:27pm

You are correct stating the problem is a balance sheet, but its all about DEBT

The_Cuss

6/14/22 3:53pm

The biggest issue with the FED is it’s existence.

Skipshot

6/14/22 4:18pm

I can't agree with that. I'd rather have the FED conducting monetary policy than

Skeptical Optimist

6/14/22 4:58pm

Well, I guess other than it’s bad policies and unconstitutionality, at least

Skipshot

6/14/22 9:09pm

Increasing fear on the street that reducing the Balance Sheet too quickly could freeze up credit markets. Powell is

roseyscenario

6/14/22 4:30pm

That will never happen with Biden. And US production is basically maxed out

The_Cuss

6/14/22 6:54pm

Oil prices would drop sharply and instantly when it became clear Biden would fully support increased production.

roseyscenario

6/15/22 7:34am

If the short term supply isn’t maxed out why not produce more now? And have

The_Cuss

6/15/22 7:44am

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