The Federal Reserve Has Been Significantly Winding Down It’s Treasury Purchases

www.newyorkfed.org/markets/domestic-market-operations/monetary-policy-implementation/treasury-securities/treasury-securities-operational-details

With all of the memes and jokes about “money printing” going around, and the news about the federal reserve possibly buying corporate bonds, I think it’s very easy to develop a distorted view of what’s going on at the federal reserve. Just from social media, you may be inclined to believe the federal reserve is ramping up it’s rate of “Money creation”- I’ve seen that sentiment reflected heavily on this subreddit. But that sentiment conflicts with the stats.

We are primarily funded by readers. Please subscribe and donate to support us!

At the start of the pandemic panic in the states, The federal reserve was Buying $75 Billion in treasuries per day.

As you can see from the link above, this has been significantly wound down throughout April. By mid April they were down to $30 Billion per day, and now, they’re only planning to buy $8 Billion in treasuries per day.

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.