NY Fed blog explores two sides of monetary policy
Short-term rates and balance sheet size both strongly affect money market conditions, study finds
The US Federal Reserve’s short-term rates and balance sheet size both have significant effects on money market conditions through the price of Treasury repurchase (repo) agreements, researchers have found.
In a blog post on April 6, the New York Fed’s Adam Copeland and Owen Engbretson used confidential trade-level data from 2020 to 2024 to explore how changes in the Fed’s administered rates and balance sheet size influenced Treasury repo market conditions.
The researchers evaluate market
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Economics
Tariffs will do little to change trade imbalance – IMF
Surplus and deficit countries must pursue structural polices to rebalance global economy, fund says
Central banks face ‘double whammy’ from Iran war
Policy-makers will have to tackle impact of higher inflation and greater fiscal stimulus
Exporters to US paying only 5% of Trump’s tariffs – ECB research
Data shows stateside consumers bearing brunt of costs from levies on imports
Geopolitics becoming ‘key risk’ for central banks – panel
Experts at ECB conference say political upheaval now a greater concern than price growth
ECB expects growth, even in ‘most severe scenarios’ – de Guindos
Outgoing vice-president downplays chances of Lagarde finishing her term early
‘Technology intensity’ worsens employment outcomes – study
Authors say jobs more likely to be lost in sectors with large prior investments in robotics and IT
Iran conflict could drive global inflation higher – IMF chief
Georgieva urges policy-makers to think ‘the unthinkable and prepare for it’
R* has increased globally since pandemic – NY Fed research
Higher neutral rates show government bonds might not be as liquid and safe as before, economists say