Joseph Wang on the Fed’s Impact on Money Markets
Macro Musings with David Beckworth
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QE and the Overnight Repurchase Facility
The push for funds in money markets grows, and again, it's coming ultimately from QE. One of the things that you see as a consequence is a shift in some GSA portfolios towards longer data Treasuries. Commercial banks usually don't buy Treasuries longer dataTreasuries. They usually stay way in the two to five year segment. And they don't have very many Treasuries to begin with because they usually have better investments. But you've seen the GSAPS as a whole are buying a lot more Treasuries and agency MBS."
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