Normalizing Composition

Published on March 4, 2024 by Premium

Governor Waller kicked off a post-QT discussion by proposing to increase the share of bills in the Fed's Treasury portfolio, a significant change that in effect extends QT beyond its official end date. Fed holdings of bills have varied significantly over the years, from a third of their Treasury portfolio pre-GFC to below 5% today. Waller suggests that the shift would reduce Fed operating losses and offer more flexibility in the event of future asset […]

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