#federalreserve

We’ve been justifiably critical of the Federal Reserve for over a year now, and long-time readers know that while DKI regularly engages on policy, we don’t take political positions.  Still, we’ve noticed an interesting pattern and thought it was worth pointing out to you. Austan Goolsbee, who was an economic advisor to President Obama, is … Read more

Two months ago, we noted that the Federal Reserve held about $9 trillion of assets that are primarily treasury bonds and mortgage backed securities (that the Fed is not allowed to hold).  We wrote that these assets decline in value when interest rates rise, and that if the Fed accelerated the pace of quantitative tightening, … Read more