Use only for questions that are directly related to the central bank of the United States, the "Fed". For example, US monetary policy, US money supply, US balance sheet, etc. Do not use for generic questions related to central banks, monetary policy or other, which are not directly related to the Fed. Use instead central-banking, monetary-policy, or related tags.
Questions tagged [federal-reserve]
267 questions
9
votes
1 answer
Why did the Federal reserve balance sheet capital drop by 32% in Dec 2015?
Here's a graph of the capital on the Federal reserve balance sheet from 2003 until present:
https://fred.stlouisfed.org/series/WCTCL
Capital dropped by 32% in December 2015.
Is there anywhere I can read about why the capital dropped so dramatically…
dharmatech
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5
votes
3 answers
Why do interest rates move together?
Why do interest rates (mortgage, LIBOR, Treasury yields, etc.) move together? What is the fundamental reason behind that?
From my understanding, what drives it is the Federal Funds Rate, which is the rate at which banks borrow from the Federal…
Victor
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4
votes
1 answer
how is new money actually introduced in the United States?
I'm aware that the fed controls the supply of money by contracting and expanding through permanent and temporary open market operations. Consisting of purchasing Treasury securities or through repos. These are sold primarily to primary dealers I …
marshal craft
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4
votes
2 answers
Federal Reserve Open Market Operations
I am trying to understand how the Fed effects the fed funds rate. Here it says:
Once the Federal Open Market Committee deems that economic conditions
warrant a change in the money supply through specific open market
operation, the command to…
BBSysDyn
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3
votes
1 answer
Why's Federal Reserve buying individual corporate bonds, when corporations have been selling them successfully?
On Jun 15 2020, the Federal Reserve is expanding its Secondary Market Corporate Credit Facility into corporate credit to now buy individual corporate bonds, on top of the exchange-traded funds it already is purchasing. I know the Fed is supposed to…
user4020
3
votes
3 answers
How does the Federal Reserve remove money from circulation?
I was watching a video about what gives money its value, and they say it's the total number of bills in circulation.
The Federal Reserve can print or remove money from circulation. But if somebody owns that money, they can't just take that money…
leeand00
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2
votes
2 answers
What's wrong with this argument that the fed's OMOs don't change the money supply
Is there anything facially stupid about the following argument that fed open market operations don't affect the money supply? And if not, are there any professional economists who have made this argument?
When the fed buys or sells treasury bonds…
Tim kinsella
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2
votes
1 answer
Why did Federal Reserve buy already-issued corporate bonds, ETFs, and agency commercial mortgage-backed securities?
I screen-shot WSJ on Sep 18 2020.
I'm assuming that Fed Primary Market Corporate Credit Facility didn't buy ALL newly issued corporate bonds?
Please see question in title. Why didn't Federal Reserve just bloat or maximize its Primary Market…
user4020
1
vote
1 answer
Federal Reserve Stock Ownership Requirement for Banks
Why are banks required to own stock in the Federal Reserve?
student
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1
vote
1 answer
What treasury security SOMA holdings have matured so far this month?
Today is August 15th 2022.
Let's say I'd like to know the treasury security SOMA holdings that have matured so far this month as well as the total that will mature this month.
Here's one approach I've used using PowerShell and the New York Fed…
dharmatech
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1
vote
0 answers
Federal Reserve Balance Sheet - June MBS Data
MBS balance sheet changes for June 2022
If I take the weekly changes of the MBS asset data:
https://fred.stlouisfed.org/graph/?g=SBRc
and look at June 2022 I get the following:
So \$1.882 billion was added to the balance sheet.
Agency…
dharmatech
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1
vote
1 answer
Why does the Fed's issuance of bank reserves to buy long-term Treasuries, shorten the overall maturity of government debt in private hands?
I quote Kenneth Rogoff, Thomas D. Cabot Professor of Public Policy and Professor of Economics at Harvard University. Is the Fed To Blame for Inequality in America? – Pairagraph Can you economists please simplify and explain this?
Of course, the…
user39911
1
vote
2 answers
When does US Federal Reserve redeem the corporate bonds it bought?
The US Federal Reserve did the corporate bond buying program in the 2008 crisis and again now during the 2020 pandemic. What happens to the bonds it is buying? That is, someday it matures and corporates pay the money back to Fed. Where can one get…
1
vote
1 answer
Why is the fed forbidden from buying gov't debt directly from the treasury?
I know it's forbidden in its charter. But what is the economic rationale?
Tim kinsella
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1
vote
1 answer
How does the Greenspan/Bernanke Put semantically relate to put options?
If rational investors reckon that "the Fed, under Alan Greenspan, its longtime chairman, would always bail stock investors out of their losing positions", then rational investors would buy call options or sell put options, not buy puts. So how can a…
user4020