Like watching a train wreck in slow motion. Maybe its not explicitly for quantitative easing (hah) but this devalues your dollar and your hard work even more.
Title was changed from original. Fed has always bought treasury bills. This is just doing so with more nuance. This doesn't mean they've begun QE (yet).
Does it do this often? This is quite literally "printing money", right? Wasn't the Fed not supposed to be allowed to do that?
I'm guessing that if it doesn't do that, short term treasury yields will spike, and they don't want that to happen?
Doesn't this make treasury yields meaningless? If they're subsided by the Fed, then it means that nobody but them will buy them, since this subsidy means that short term treasuries are noncompetitive with other asset classes.
I'm thinking the same thing. AFAICT this is still going to increase M0 and long-term inflation risk. I don't see how this rate cut is likely to change and/or stimulate the economy with the conditions we have today, just to add to the risk of stagflation.
There was a QA where they specifically called out this was NOT for QE (quantiative easing) or "money printing", but rather normal technical operations, I think build up more liquidity as needed.
Like watching a train wreck in slow motion. Maybe its not explicitly for quantitative easing (hah) but this devalues your dollar and your hard work even more.
Title was changed from original. Fed has always bought treasury bills. This is just doing so with more nuance. This doesn't mean they've begun QE (yet).
Does it do this often? This is quite literally "printing money", right? Wasn't the Fed not supposed to be allowed to do that?
I'm guessing that if it doesn't do that, short term treasury yields will spike, and they don't want that to happen?
Doesn't this make treasury yields meaningless? If they're subsided by the Fed, then it means that nobody but them will buy them, since this subsidy means that short term treasuries are noncompetitive with other asset classes.
What am I missing?
I'm thinking the same thing. AFAICT this is still going to increase M0 and long-term inflation risk. I don't see how this rate cut is likely to change and/or stimulate the economy with the conditions we have today, just to add to the risk of stagflation.
There was a QA where they specifically called out this was NOT for QE (quantiative easing) or "money printing", but rather normal technical operations, I think build up more liquidity as needed.