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How can fed keep short term rate low while keep tapering?
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How can fed keep short term rate low while keep tapering?# Stock
f*y
1
How can that be done?
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O*l
2
reverse repo

【在 f******y 的大作中提到】
: How can that be done?
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B*n
3
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?
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f*y
4
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.
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