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They haven’t abandoned QT yet, Treasuries mature twice a month, mid month and end. Last week 7.1 billion in 3 year notes rolled off which was the only asset sch
by almost_usual 4y ago
They haven’t abandoned QT yet, Treasuries mature twice a month, mid month and end. Last week 7.1 billion in 3 year notes rolled off which was the only asset scheduled. There is a larger roll off end of month.
The “QE” money on the books is a loan as of right now which isn’t QE.
Now will QT continue? Probably not, we’re hitting a liquidity floor. I see rate hikes may continuing though.
- silentsea90 4y agoI am dumb. How does Treasuries maturing help with QT (not questioning this, just not clear on this)?
- almost_usual 4y agoThe Fed injects money into the economy by buying US Treasuries or GSE MBS traditionally from the open market (QE). During continued QE the Fed will re-purchase these assets when their existing ones mature. During QT on maturity rather than buy assets again they write them off and liquidity (money) is removed from the market.
- silentsea90 4y agoThanks!