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> Manmohan Singh, a senior economist at the IMF, said a further $1tn of QT would be equivalent to lifting the federal funds rate by another 0.15 to 0.25 percent
by BoiledCabbage 3y ago
> Manmohan Singh, a senior economist at the IMF, said a further $1tn of QT would be equivalent to lifting the federal funds rate by another 0.15 to 0.25 percentage points.
- mamonster 3y agoFor people who aren't aware, there is a metric called Fed Proxy Funds rate that is published by the SF Fed that attempts to take into account the QT/QE conditions as opposed to a simple effective funds rate(it's a little more complicated than that, can read the research paper on the SF fed website). That rate is at about 6% right now, and has been higher than the effective rate since the start of 2022.
- nine_zeros 3y agoIs there any way to get that proxy rate as an investor? Because short term treasury yields are closer to 5.1% right now.
- Racing0461 3y ago[dead]
- mamonster 3y agoNo, there isn't(unless there are some opaque proxy rate indexed derivatives I am not aware of and that would certainly be OTC and not super accessible ).
- bozhark 3y ago0.25 was predicted