Has the Fed Abandoned Risk Assets? | Joseph Wang
Forward Guidance
00:00
The Fed's Response to the Housing Market Bubble
The Fed says it wants a greater percentage of its balance sheet to be treasuries, not mortgage backed securities. The housing market is on fire; do you think the Fed is responding to that? Or is it more that they don't want to cause disturbances in the treasury market? It's really about having 0% on the front end and just buying a ton of treasuries to make sure that the long end is pretty low as well.
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