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0
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1answer
65 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
73 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
331 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 ...
6
votes
2answers
598 views

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

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
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1answer
203 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
75 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
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2answers
474 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
550 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? ...
4
votes
1answer
211 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
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1answer
98 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
103 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
220 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
642 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
675 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
85 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. ...
3
votes
1answer
272 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
2k 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
409 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: ...
15
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3answers
460 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?