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1
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2answers
66 views

How are bonds affected by the Federal Funds Rate?

My question is how do bonds react to changes in the Federal Funds Rate? Specifically, government bonds, because I don't see corporate bonds being affected as drastically. I've done research, but for ...
0
votes
1answer
40 views

Federal Reserve Notes vs Coins [closed]

More of a two part question. In the current system (Fiat only currency), why is a Federal Reserve Note booked as a liability (on the Fed balance sheet), but a Coin is not booked as a liability by the ...
3
votes
3answers
152 views

Should I change 401k investment options to prepare for rising interest rates?

As the "Fed" (in the USA) is getting ready to raise the federal funds rate, is it a good idea (or is it even possible) to try to adjust my 401k portfolio for better returns? I'm speaking in general ...
10
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3answers
177 views

What exactly is the interest rate that the Fed is going to adjust?

Lately, the financial press talks non-stop about the Fed doing this and that to the interest rate. What exactly is this interest rate that the financial press is talking about? Why is this Fed ...
3
votes
1answer
72 views

Investments minimally affected by Federal Reserve rate increases?

What short term investment instruments would be a good option when the Federal Reserve funds rates are anticipated to rise? My understanding is bonds will decrease in value since the newer bonds with ...
-1
votes
3answers
301 views

How can banks pay interest on money they borrow from the FED? [closed]

I'm not sure if this is the right site to ask this question. If it's not, please point me in the right direction. So, if the FED is the only institution that can increase the monetary base (create ...
1
vote
0answers
91 views

Recover abandoned US bank account

I have had problems to find out where, at which American bank, a company I worked for had deposited commission cash and given custody of some shares I purchased through options. But now that I found ...
0
votes
1answer
129 views

Regulation T and Initial Margin Requirements: How to interpret the 50%?

I wanted to understand initial margin requirements in the Federal Reserve's Regulation T section of the code. I read an article in Investopedia on Regulation T requirements, but I still feel uneasy ...
1
vote
1answer
74 views

How does Fed's imminent cut-off in its monthly buyback program detrimentally affect Emerging Markets currencies?

I've been reading a lot of news regarding how Fed's plan in cutting its MBS buyback program has negatively affected Emerging Markets currencies, e.g., Philippines and Indonesia. However, I am not ...
3
votes
2answers
420 views

Effect of Quantitative Easing on Price of Bonds

I don't seem to understand the effects of QE. Fed uses open market to purchase long-term government bonds which pushes up the demand for bonds and drives up the price of bonds. However, this ...
9
votes
2answers
3k views

Why is a coin an asset whereas a note is a liability on the Federal Reserve's balance sheet? [closed]

Can someone explain me why coins are assets and notes are liabilities for the U.S. Federal Reserve? I know coins are made from "precious" metals, but even notes are made from various materials too, ...
2
votes
1answer
313 views

Does the Federal Reserve have the power to buy municipal bonds through quantitative easing?

Does the Federal Reserve (or any other central bank in any other country) have the power to buy municipal bonds through quantitative easing? If it does, where would I find out how much?
2
votes
1answer
89 views

How do banks fail if they do not have capital problem but only have liquidity problem when Fed exists?

Banks have Fed as lender of last resort - so if Fed provides loans to banks, banks with liquidity problems seems to be OK. But in reality, banks fail when met only with liquidity problems. So is this ...
4
votes
2answers
793 views

Why do interest rates increase or decrease?

Do interest rates increase based on what the market is doing, or do they solely increase based on what the Federal Reserve sets them at? Why is it assumed that interest rates are going to increase ...
-2
votes
2answers
580 views

Why does quantitative easing negatively affect stocks?

Is there a solid rationale for why the Fed's quantitative easing negatively affects the stock markets? Is it because markets were due for a correction, and quantitative easing provided the excuse? ...
5
votes
1answer
229 views

What are good investments to use as hedges when the Federal Reserve draws down quantitative easing?

Basically I think it is quite obvious that quantitative easing (QE) will be pulled back eventually and countries will start to tighten their monetary policy. When that happens, what kind of assets ...
-1
votes
1answer
109 views

Does the Fed keeping interest rates low stimulate investment in the stock market and other investments?

I heard that if the Fed keeps interest rates low then folks with money to invest will choose something other than just a money market or passive sort of investment, perhaps choosing investing in the ...
1
vote
2answers
173 views

Where do stock traders get realtime updates on Fed announcements? Is there a feed I could scrape?

Upcoming Fed announcements are important, and I want to get the news in realtime when it happens. I know there are a few expensive services, but I'm looking for some feeds that can be scraped or ...
8
votes
1answer
244 views

Investments: Feds buying more treasury bonds? How does it affect Bonds (going up or down)?

I have set up a 401(k) and I have bonds. When the Federal Reserve buys more treasuries (today's news) what's the effect on bonds? Should I sell my bonds or buy more?
0
votes
1answer
1k views

Why do Central Banks buy gold for their gold reserves?

I read The People's central Bank of China (i think called PBOC) should have bought 50 to 70 tons fo gold in 2011 (Marcus Grubb, managing director World Gold Council). On the same article it states ...
6
votes
4answers
1k views

Why can't the Fed lower interest rates below zero?

Ben Bernake said today that he can't lower interest rates further because they can't be lowered below zero. IIUC benchmark interest rates are determined by what someone is willing to pay in an ...
5
votes
3answers
99 views

How are mortgage interest rates determined?

I know it's somewhat controlled by what the Fed sets interest rates at. I'm not clear on what exactly this interest rate is. Also I have heard that mortgage interest rates track Treasury Bonds. ...
4
votes
2answers
630 views

Why is seigniorage different for paper notes and coins?

Wikipedia defines Seigniorage for paper notes and metal coins. Why is seigniorage for paper money not just face value - production cost? I can understand using just the interest rate in the age of the ...
2
votes
4answers
3k views

How much control over the Federal Reserve does the U.S. Government have?

Or, in other words: Who does the head of Fed report to? Is the Federal Reserve a private institution? I'm going to be a bit naive here, have just read about how the Fed has been brought to life and ...
3
votes
2answers
475 views

What does the Fed do with the extra money it is printing? [closed]

Last month I read some news about the Fed printing money to devalue the U.S. Dollar compared to other currencies. But what do they do with this extra money?
6
votes
2answers
4k views

Why does the Fed buy treasury bonds through Goldman Sachs instead of from the treasury?

These animated creatures don't like it, and think the federal reserve is just giving Goldman Sachs money: http://www.youtube.com/watch?v=PTUY16CkS-k Quora says it is an auction through dealers: http:/...
15
votes
3answers
622 views

Is there any way to know how much new money the US is printing?

There is a lot of talk about the Fed printing money. Is there any way to know how much new money is being printed and when?