They experienced a sudden and unexpected spike in interest rates, and the Fed moved in to avoid contamination of the rest of the financial system. [...] However (…) the translation of dollar amounts of balance sheet reductions into equivalent policy rate hikes depends on the evolution of the size and maturity composition of the balance sheet. [...] In turn, between the beginning and the end of the first QT – light and brief – in 2017, the premiums on 10- year Treasury bonds fell. [...] Doubts concern the pace and extent of the tightening, both about base rates and the size of the Fed's balance sheet at the end of QT. [...] About the Policy Center for the New South The Policy Center for the New South (PCNS) is a Moroccan think tank aiming to contribute to the improvement of economic and social public policies that challenge Morocco and the rest of Africa as integral parts of the global South.
- Pages
- 11
- Published in
- Morocco