How can fed keep short term rate low while keep tapering?
How can fed keep short term rate low while keep tapering?# Stock
f*y
1 楼
How can that be done?
O*l
2 楼
reverse repo
【在 f******y 的大作中提到】 : How can that be done?
B*n
3 楼
Fed is buying bonds through oversea trading desk; they have been doing that for quite a while. Keeping rate low means Fed couldn't sell any bonds in their portfolio. They have to keep the price up.
【在 f******y 的大作中提到】 : How can that be done?
f*y
4 楼
Fed cannot sell bond, but without keep buying, the rate can still go up, right? Thanks anyway you told me sth I didn't know.