The Effect of Quantitative Easing on Interest Rates

The Fed owns about five and a half trillion dollars in treasuries I mean if you release that into the market, that's has to have some impact on interest rates. Right now the market is saying yeah, the Fed buys a little bit less MBS Maybe that has an effect on the mortgage rate, but it isn't having an effect on treasury for some reason. Growth and inflation expectations have been diminishing over the last year or so. The euro dollar curve changes through time that actually tells us something important Part of it is about what market participants think.