On Thursday, March 13, 2008, the Federal Reserve’s System Open Market Account will redeem $5 billion of Treasury bill holdings.
The Federal Reserve Open Market Trading Desk will continue to evaluate the need for the use of other tools, including further Treasury bill redemptions, reverse repurchase agreements and Treasury bill sales.
Monday, March 10, 2008
Is the Fed going to tighten on Thursday!?! The Dow fell just 100 points on this announcement:
Subscribe to:
Post Comments (Atom)
2 comments:
Interesting. NowAndFutures.com notes on their Fed Watch page:
How much is the Fed concerned about U.S. inflation and/or deflation (and doing something about it)?
We see here that the Fed was concerned about inflation in 2000, moved to lower it, then likely judged they went too far and moved back up in 2001. There was also a large spike starting 9/11/2001.
Since then and up to early 2006, it has gradually been lowering the rate of money creation as measured by the monetary base.
Perhaps they caught wind of some scary inflation numbers that we have yet to see?
I'm glad I was wrong.
Post a Comment