How High Will Rates Fly?
Real Vision: Finance & Investing
00:00
QE - Is the Fed Going to Continue to Use Interest Rate Policy?
The Fed is losing money because they pay more in interest rate to banks on the reserves that the banks keep at the Fed. So it's going to be a little controversial, especially the hundreds of billions that really in the end have to be paid to banks under the operational framework the Fed has. And if they want to increase the pace of QT, they are going to have to do outright sales, especially of MBS - long dated securities.
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