To provide a safety net for market liquidity? Bank of America: The Federal Reserve is expected to absorb $2 trillion in US debt to resolve the fiscal "siphoning crisis".
Intelligence Finance APP learned that, according to a U.S. bank, the structure of the U.S. Treasury bond portfolio held by the Federal Reserve may change, which could lead to the central bank purchasing nearly $2 trillion of short-term bonds in the next two years, enough to absorb all of the U.S. Treasury's bond issuance during that period. If the Federal Reserve takes such measures, it will alleviate concerns that large-scale issuance of U.S. Treasury bonds will deplete market liquidity.
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