5min chapter

Forward Guidance cover image

False Dawn: Why The Rally Is Over | Andy Constan & Joseph Wang

Forward Guidance

CHAPTER

What's the Impact on the Financial Markets?

When the treasury buys, sorry, when the fed buys a, a, a us Treasury in the open market, the seller now has money. And they look to the curve or next asset that they want to own and it's typically a more risky assetn the treasury's bont. The reason why cue was done is because the fed ran out and the rest of the world ran out of options. They couldn't stimula lower inchrest rates below zero, so they had to use a policy that really doesn't work to slate a the economy directly.

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