Not exact matches
When real interest rates are low (or negative), investors turn away from
paper assets with declining value and turn
toward assets with real value, like gold.
Seth Carpenter, Selva Demiralp, Jane Ihrig and Elizabeth Klee find that some categories of investors appear to sell U.S. Treasuries to the Federal Reserve and rebalance
toward riskier
assets (corporate bonds, commercial
paper, and municipal debt).
Apart from the new stimulus bill, the administration has committed $ 50 billion from Troubled
Asset Relief Program funds
toward foreclosure mitigation, and the U.S. Treasury has doubled its commitment to buy mortgage
paper from Fannie Mae and Freddie Mac.