Is The Fed Short Volatility? (Or Is Jerome Powell Actually Thurston Powell III?)
by Anthony B Sanders The Federal Reserve doesn’t activley manage its interest rate exposure on its over $4 trillion balance sheet. Yet it purchases and sells Treasury Notes/Bonds and Agency Mortgage-backed Securities (AgMBS) in a measured way to impact interest rates. Chris Whalen has a nice writeup on Fed Chair (to be) Jermore Powell’s thoughts … Read more