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Joseph Wang - 3 Andrea Ricci - 2 Wang - 2 Louis - 1 Michael S - 1 Jerome Powell's - 1 He's - 1 they've - 1
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Fedguy.com Kasikornbank Bangkok Rights ORLANDO , Florida Durham
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Search resuls for: "Joseph Wang"


5 mentions found


☆ Fed may need four years to recoup income loss, St. Louis Fed study says
  + stars: | 2023-11-27 | by ( Michael S. Derby | ) www.reuters.com   time to read: +3 min
The pincer movement of these two policy actions drove the Fed to start losing money in September 2022. The central bank captures the net negative income situation in an accounting measure called a deferred asset, which as of Nov. 22 stood at $120.4 billion. As the Fed sees it, the deferred asset is what must be covered before the central bank can again return excess earnings to the Treasury. The Fed has repeatedly stressed that losing money in no way impacts its ability to operate and conduct monetary policy. The research from the St. Louis Fed estimates it will cover the deferred asset by mid-2027.
Persons: Louis, Joseph Wang, Michael S, Andrea Ricci Organizations: Federal, U.S . Treasury, Federal Reserve Bank of St, Fed, Treasury, Louis Fed, Treasury Department, Reuters, New York Fed, Thomson
☆ A former Fed trader predicts mounting US debt will worsen the bond-market crash. He shares which Treasury duration investors should buy to eventually profit from rising prices.
  + stars: | 2023-11-03 | by ( Laila Maidan | ) www.businessinsider.com   time to read: +5 min
The central bank extended its pause on interest-rate hikes , trampling expectations of higher rates and causing investors to lock down higher yields while they still can. Joseph Wang, a former trader on the Fed's Open Market Trading Desk, says other than that, Powell's speech was uneventful. While Treasury yields have been dropping all week, Wang believes it's a temporary reaction. In the past, if Treasury yields suddenly became very high, banks could step in and buy the bonds. Wang says investors should opt for two-year notes because they're much more sensitive to potential Fed rate cuts, which would increase the price on those bonds.
Persons: Jerome Powell's, Joseph Wang, Wang, He's, they've, it's Organizations: Fed, Treasury Locations: Fedguy.com
☆ Fed QT mix may be capping, not spurring, long yields
  + stars: | 2023-10-11 | by ( Jamie Mcgeever | Thomson Reuters | Jamie Mcgeever Has Been A Financial Journalist Since | ) www.reuters.com   time to read: +5 min
If the Fed's holdings of long-dated securities were shrinking like other parts of the curve, or even at all, more of these bonds would be available to the wider market. Wang recognizes that if the Fed held fewer longer-dated securities these yields might be even higher, but also points out that the Fed's holdings are largely determined by what Treasury issues. All told, the Fed's 'QT 2' is almost twice the pace of QT 1. Reuters Image Acquire Licensing RightsSince the Fed started QT 2, its total holdings of Treasury bills and bonds have fallen to $4.93 trillion from $5.77 trillion. The average profile of Fed-held Treasury debt is longer than total outstanding Treasury debt, and getting longer.
Persons: Sukree, Benson Durham, Piper Sandler, Joseph Wang, Wang, Pierre, Olivier Gourinchas, Neel Kashkari, Jamie McGeever, Andrea Ricci Organizations: Rights, Fed, Treasury, Reuters, Monetary, Minneapolis, Thomson Locations: Kasikornbank, Bangkok, Rights ORLANDO , Florida, Durham
☆ Fed monetary policy mechanics would be tested by US debt default
  + stars: | 2023-05-15 | by ( Michael S. Derby | ) www.reuters.com   time to read: +5 min
That's because U.S. government bonds are the key to how the central bank sets its short-term interest rate target. Anything that gums up the Treasuries market could scramble those mechanics. Setting a baseline for short-term interest rates via its reverse repo facility in effect borrows cash from money market funds in transactions collateralized with government bonds. The Fed currently owns about $5.2 trillion in Treasury debt, and the bulk of it would be fine at the start of a default. And that's where pricing an impaired Treasury for Fed operations gets tricky.
☆ Analysis: Fed's balance sheet drawdown could sunset next year
  + stars: | 2022-12-22 | by ( Michael S. Derby | ) www.reuters.com   time to read: +5 min
Analysts at investment bank Nomura see the Fed ending the balance sheet run-off in September of next year. The balance sheet drawdown, meanwhile, has been designed to run more or less on autopilot, in the background. Reuters GraphicsNomura said the U.S. central bank will likely get its balance sheet down to around $7 trillion, well above the pre-pandemic level. Reductions in the Fed balance sheet withdraw bank reserves from the system, in a regime that's dominated by many moving parts, swirling around each other unpredictably. It's something the Fed faced in September 2019, when it was in its latest chapter of balance sheet contraction.
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