Sentences with phrase «fed bond purchases»

Combined, these two events beg the question whether Fed bond purchases, either actual or expected, are related to the decline in the real return over the last downturn.

Combined, these two events beg the question whether Fed bond purchases, either actual or expected, are related to the decline in the real return over the last downturn.

Not exact matches

A cloud of uncertainty had settled over markets after Fed chairman Ben Bernanke first mentioned the possibility of tapering the Fed's monthly bond purchases during congressional testimony on May 22.

The Fed has cut $ 10 million from its monthly bond purchases, which fall to $ 75 billion, but said further tapering depended on the strength of the economy, particularly job creation.

Although last year was favorable for developing countries, investors remember the painful «taper tantrum» that ensued several years ago, when the Fed signaled it would begin pulling back on its massive bond purchases that kept rates low while injecting liquidity in markets.

The bond purchases, the third round of quantitative easing embarked upon by the Fed in the wake of the 2008 financial collapse and subsequent recession, have kept interest rates and bond yields low.

Charles Plosser, president of the Fed's Philadelphia regional bank, and Richard Fisher, president of the Fed's Dallas regional bank, have also been critical of the Fed's bond purchases.

The Fed can't raise interest rates while it's simultaneously pushing them down through bond purchases.

The Fed can use that interest either to provide additional liquidity to the Treasury, or it can continue to purchase bonds without adding to its balance sheet, Nordlicht adds.

Fast forward to 2014, and the markets don't look drastically different: Ben Bernanke steps down as the Fed chief with quantitative easing — a bond - purchasing policy established after the 2008 financial crisis — still in place.

But with the unemployment rate, at 6.2 percent, well below its recession - era peak of 10 percent, and inflation showing no signs of falling further, the Fed has begun to trim its monthly bond purchases, aiming to end them completely by October.

The Fed is adding to its investment portfolio with $ 85 billion a month in bond purchases.

In December the Fed began reducing its bond - buying purchases from US$ 85 billion a month.

Investors have had a long time to digest the taper news: Their reaction to the Fed actually shrinking the size of its bond purchases is likely to be smaller than their reaction in anticipation of such a move.

At his news conference, Bernanke said there's «no fixed schedule» date or «magic number» for when the Fed will slow or end its bond purchases.

The Fed was widely expected to scale back its bond purchases.

Another option is that the Fed could slow or stop their bond purchases in the future.

Bond yields spiked, and prices for a number of other financial assets that had benefited from expectations of ongoing asset purchases by the Fed dropped precipitously, not just in the United States but in almost every other country.

Together with earlier announced bond purchases, the Fed's move will increase «holdings of longer - term securities by about $ 85 billion each month through the end of the year,» the Fed announced Thursday.

In 2013, the Fed indicated it would begin to reduce its bond purchases and 10 - year US Treasury rates increased by 1.3 percent to 3.02 percent.

Bluford Putnam, managing director and chief economist at CME Group, the world's biggest futures market operator, agreed that the Fed's near - zero interest rates and bond purchases helped stabilize financial markets and bolstered the economy — but only for a while.

They say the Fed's easy - money policies, including huge bond purchases and a seven - year period of record low rates, had diminishing effect over time and subjected the nation to side effects that could lead to serious problems in the future.

New to the Fed policy this year was the unwinding of the bonds that it had purchased during the financial crisis, recession and recovery.

The effects of the Fed's potential tapering of its $ 85 billion in monthly bond purchases are showing in global markets.

At some point in the next year, the Fed will taper off its bond purchases, As it does that and as the market anticipates that, we're likely to see some big swings in the stock market.

When it happens it will likely be for a number of different reasons including a combination of higher economic growth, higher inflation, lower risk aversion or a pullback in bond purchases by the Fed.

The Fed controls monetary policy by making open - market sales or purchases of government bonds and Treasury bills.

The rate at which the Fed sells or purchases government bonds determines the federal funds rate, or the rate at which banks can borrow funds from one another overnight.

Awash in Liquidity The second round of quantitative easing, known as QE2, follows the Fed's purchases of nearly $ 2 trillion of bonds during the Great Recession.

Long - term bond prices fell on disappointment that the Fed will concentrate its purchases in the five - to - six - year maturity area, rather than in longer - dated bonds.

Instead, the Fed may let their $ 75B monthly T - bond purchases stop in late June (as planned) but continue to use the $ 20 - 25B monthly proceeds of maturing bonds to buy more T - bonds.

Many economists think the Fed will begin slowing its monthly bond purchases to $ 70 billion or $ 75 billion.

He said the Fed is now more likely to slow the bond purchases in September, although that decision depends heavily on the August employment report.

The Fed announced plans for Treasury bond purchases (QE2) for the next month.

He said the Fed's decision to start reducing its $ 85 billion in monthly bond purchases «could be in October, it could be in December, but it also could be at the January meeting.»

Still, 70 % said the Fed should continue reducing the monthly size of its bond purchases and end the program completely by the end of the year, with 58 % expecting that to happen.

They likely have room to up allocations: $ 71 billion has left Asia ex-Japan bonds and stocks since the mid-2013 «taper tantrum» set off by the Federal Reserve (Fed) signaling an end to bond purchases, according to EPFR Global data.

That s my best guess as it looks now but all asset classes seemingly are being manipulated from gold to bonds to currencies to stocks.Which one breaks away from the puppet strings that the Central Banks are holding on to.Fascinating that the dollar is surging causing gold and commodities money to be diverted to stocks.Is the dollar being purchased by our Fed?

The 10 - year is not trading at closer to 3 percent because of the «continue large purchase of Treasury bonds by the Fed.»

The fact that the 10 - year is trading closer to 3 percent is probably due to continued large purchases of Treasury bonds by the Fed, which are going to taper off.

He also discussed the large - scale asset purchases of the Fed's quantitative easing program, casting doubt on much of the literature of the day — which tended to find positive, but limited effects of such purchases on reducing bond yields.

Consequently, Jack will be quick to spend the money received from the Fed, most likely by purchasing some other bonds or perhaps by purchasing some equities.

To execute QE, the Fed purchases a set amount of Treasury and Mortgage - Backed bonds each month from banks.

Federal Reserve (FED): FED SOMA reinvestment is expected to end sometime after rate hike Bank of England (BOE): BOE also reinvests maturing bonds on its balance sheet with new bond purchases

When the Fed announced a new round of bond purchases, interest rates on 10 - year Treasuries did drop.

A less accommodative Fed removes one prop from the bond market, but the reduction in purchases is dwarfed by the likely increase in global savings, i.e. there are plenty of private sector buyers looking to hedge long - term liabilities.

Quantitative easing is a process via which the Fed purchases mortgage - backed securities (MBS) and other bonds in the open market in order to lower bonds yields and everyday mortgage rates.

Under Powell's predecessors, Janet Yellen and Ben Bernanke, the Fed's board endured criticism from House Republicans over its decision to pursue a bond purchase program designed to lower long - term borrowing rates and to leave its key rate at a record low near zero for seven years.

Fed Chairman Ben Bernanke said late Wednesday that moderating bond purchases amounting to $ 85 billion a month later this year seems to make sense given the central bank's optimism regarding the U.S. economic outlook.

Still, we've observed diminishing returns from the Fed's interventions, there is no political tolerance for the Fed to intervene in securities involving any credit risk that would be borne by U.S. citizens (purchasing European sovereign debt, for example), and the yield on the 10 - year Treasury bond is already down to 1.7 %, which is far below where it stood when prior interventions were initiated.