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Except that the Fed is buying bonds that pay a higher rate that they borrow at (U.S. Treasury rate). So unless there is a lot of defaulting, they should be fin
by drdec 6y ago
Except that the Fed is buying bonds that pay a higher rate that they borrow at (U.S. Treasury rate). So unless there is a lot of defaulting, they should be fine.
It's like they are mortgaging the White House at 0.25% and buying bonds that pay 4%.