I don't think it was so much a matter of keeping rates down as
it was to provide liquidity to the system. Evidently spreads in the
Treasury market were starting to blow out. I think right now it's
about trying to maintain an orderly market in Treasuries more than
it is about the level of rates. Although in the end money is
money.
I also think the Fed is concerned about maintaining some
stability in the Repo market and in credit default markets. The big
fear is contagion. They have to do whatever is necessary to stop
contagion to lesser credit markets and derivatives.
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Fed added 1.5 trillion to
Posted by law6 on 12th of Mar 2020 at 02:13 pm
Fed added 1.5 trillion to keep rates down
I don't think it was
Posted by puma on 12th of Mar 2020 at 02:47 pm
I don't think it was so much a matter of keeping rates down as it was to provide liquidity to the system. Evidently spreads in the Treasury market were starting to blow out. I think right now it's about trying to maintain an orderly market in Treasuries more than it is about the level of rates. Although in the end money is money.
I also think the Fed
Posted by puma on 12th of Mar 2020 at 02:49 pm
I also think the Fed is concerned about maintaining some stability in the Repo market and in credit default markets. The big fear is contagion. They have to do whatever is necessary to stop contagion to lesser credit markets and derivatives.