PLW - Federal Reserve Watch: Now The Hard Work Begins
- The Federal Reserve has a pretty precise plan for how it would like to raise its policy rate of interest over the rest of 2022.
- The Federal Reserve now has added a picture of how it will act to reduce the size of the Fed's portfolio of securities so as to complement the rate increases.
- There still has been little or no discussion about the role the U.S. Treasury Department will play in the future management of the Fed's policy rate of interest.
- Furthermore, there has been little or no discussion about how the Fed will manage its reverse repurchase agreement relationships so as to contribute to the Fed's overall plan.
- So, there are still some unknowns about how the Fed will be managing its balance sheet over the next several years.
For further details see:
Federal Reserve Watch: Now The Hard Work Begins