Federal Reserve bought US Treasury bonds worth $43.6 billion over the course of one week. This has sparked concerns about a quantitative easing program.
Documents show that the Fed bought $8.8 Billion in 30-year Bonds on 8th May via its System Open Market Account. This purchase followed an earlier $34.8 Billion one made that week.
Charlie Garcia, in an op-ed for MarketWatch, called the action “monetary policy done on tiptoes.”
Fed officials have long maintained that such purchases were routine reinvestments in maturing securities, to influence the interest rate and adjust money supply to reach its target.
China’s massive Treasury sale prompted the Fed to go on a buying spree.
Treasury Department figures show that China has sold US Bonds worth $18,9 billion since March. Most other countries have increased their US bond holdings.
China holds US Treasury bonds worth $765.4 Billion, placing it third behind Japan and the UK, who each hold $779 billion.
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Sources of Images include Pixabay Creative Commons & Midjourney
As new information becomes available, this post Fed Buys US Treasuries for $43,600,000,000 as part of an alleged ‘Stealth Quantitative Easing’ operation after China dumps billions in bonds may change.
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