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Fed only controls overnight rate. QE happened because overnight rate hit the floor and is now being unwound. If investors are not willing to fund the Treasuries
by fspeech 9y ago
Fed only controls overnight rate. QE happened because overnight rate hit the floor and is now being unwound. If investors are not willing to fund the Treasuries there is not much the Fed can do. But that is not the case, certainly not now.
- cm2187 9y agoNo the Fed has been manipulating long term rates too (operation twist).