Since the 2007 financial crisis the Fed’s portfolio of Treasury and mortgage-backed securities has grown tremendously, from $900 billion to more than $8 trillion today. In recent years there has been much discussion about how and how quickly the Fed may begin reducing the size of its balance sheet. What is the Fed’s balance sheet? […]
What happens to borrowers, savers, investors, and bank profits inside and outside the United States as these rates change?
By reviewing the Federal Reserve website and/or other relevant resources, refer to the latest 2 changes to the discount rate and federal funds rate target made by the U.S. Federal Reserve and discuss the following: How did the stock market indices react to these changes? How did long-term U.S. Treasury bond yields react to these […]