Financial Times/Kate Duguid, Colby Smith and Tommy Stubbington/6-14-2022
“On Wednesday, the US central bank will stop pumping the proceeds of an initial $15bn of maturing Treasuries back into the $23tn market for US government debt, the first time it has done so since it kicked off its bond-buying programme in the early days of the coronavirus pandemic.”
USAGOLD note: And so it officially begins……On the same day that the Fed raises rates by 0.75%. One analyst reflected what a good many are thinking. “Our understanding,” he said, “is that the Fed’s involvement in the market and buying Treasury securities helps improve liquidity, helps improve market functioning. And now we’re going to be in an environment where there’s more supply that needs to be taken down, and the Fed is not there to help.” We are about to see how all that works out.
