3min chapter

Forward Guidance cover image

An Update On The "March Banking Panic" | Weekly Round Up

Forward Guidance

CHAPTER

The Fed's Balance Sheet Is a Single Source of Truth

There have been two different interpretations of the Fed's balance sheet. One is that when banks are using this new BTFP facility or the discount window, that should be seen as a lifeline to banks. On the other hand, people say quantitative easing coincides with interest rates rising and long term bond yields rising. But I think that's because they do quantitative easing in a sort of slowdown when interest rates are low,. So, and then they go up. It's all about timing.

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