Why? I call it taxes due on the bond industry. Treasury pays a rate on debt and receives a tax payment from Janet. Goldmann Sachs has the job of negotiating the split. So Janet is filling up her taxes due pot, and it does indeed look like the bind industry will be paying a variable rate QE tax until the new monetary regime. It will be interesting to see how this evolves.
In the course of December and January, the balance sheet of the U.S. Federal Reserve (Fed) expanded by $186.7 billion to a total of $4.02 trillion. That policy reversal came after an impressive $244.6 billion liquidity withdrawal between August and November of last year.
Interestingly, the Fed's apparently puzzling return to aggressive asset purchases continued in an environment of mounting concerns about much-feared and presumably fast-approaching interest rate increases in the United States.
Sunday, February 8, 2015
Janet's back doing the QE?
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