Questions tagged [federal-reserve]
The federal-reserve tag has no usage guidance.
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How do reserve balances held by the banks at the fed show up on their balance sheet? [migrated]
I assumed banks' reserve balances at the FED would increase with higher interest rates (less lending, more money held in reserves). However, looking at the balance sheets of major banks, the ratio of ...
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Why did the Fed increase the fixed rate of I-bond to 1.3% from 0.4% for the US?
What could be the cause of this increase? Would the trend continue? Why or why not?
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Market Reactions to Federal Reserve's Rate Decisions
Background: During the meeting on December 13, 2023, the Federal Reserve (Fed) decided to keep interest rates at the level of 5.25% - 5.50%. The market's expectation is that interest rates have peaked ...
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Why is a Federal Reserve Note an Obligation of the United States?
The Federal Reserve Act says that a Federal Reserve Note is an Advance from the Board of Governors of the Federal Reserve to a Federal Reserve Bank and serves NO OTHER PURPOSE.
When Federal Reserve ...
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Why don't Federal Reserve Notes pay for purchases? [closed]
What constitutes true payment if a Federal Reserve Note is NOT payment?
Ounces of gold? Anything I deem value in agreement with another party?
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What is the relationship between Feds Fund Rate vs. Certificate of Deposit Rate in the US?
I've noticed the Fed in the US has increased their Fed Fund Rate and the banks in the US have also increased their rates in the Certificate of Deposits (CD) from 0.XX% to 4.XX% since 2021 until now.
...
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Which mortgage rates and how soon get affected by Fed's hikes/drops?
I know that Fed doesn't set mortgage rates directly, but they usually follow Fed's policy.
My question is: How soon do mortgage rates go up after Fed's rate hikes, and do Fed rate hikes affect all ...
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Why did the composite rate for I bonds issued drop to 6.89% from 9.62% when the Fed has been increasing interest rate?
Why did the composite rate for I bonds issued drop to 6.89% from 9.62% when the Fed has been increasing interest rate? What is the correlation between I bonds rate and Feds fund rate?
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Lag between Fed Announcement and Actual Implementation
After the Fed announces its new target range for Fed Funds, is there a set number of days before actual implementation?
If not, is there a convention, like within a week?
I'm wondering, because the ...
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In theory, can FDIC fail?
In theory, can FDIC fail? If it goings default, who is going to cover the customers?
Will the federal reserve automatically prints money to keep FDIC alive? Or such decision must be made through a ...
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Why do we have *daily* series of T-bill yields?
I understand that each week the US Treasury issues new T-bills at different maturities (1-month, 3-months, 1-year, etc). As far as I understand, this issuance happens every Tuesday. After the auction, ...
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How can treasury bond ETF increase its value when the FED raises interest rates?
The theory about bonds say that when the interest rates raise, bonds value falls since today's bonds have a higher yield than yesterday's bonds.
However, let's take the 2018-2019 period. The FED ...
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Deposit stimulus check electronically without signatures?
We went through the process of moving, and now I can't find the stimulus check.
I did take pictures of the check before moving, but the check doesn't have our signatures.
Since my bank lets me deposit ...
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What are the implications of a steepening yield curve? [closed]
Pretty straightforward question, with, I imagine, very complex answers. I know the yield curve basically impacts the entire financial system, but I am looking to understand its macro-effects. Here are ...
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Bond yield vs Fed interest rate correlation
Could someone explain to me why large investors (eg Bill Gross) are shorting bonds now?
Why are people/media believing that bond price crashing down is related to the Fed potentially increasing ...
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Why do some dates not have any data on the Federal Reserve historical currency data?
Example: https://www.federalreserve.gov/releases/h10/hist/dat00_al.htm
Some of the days, such as 12-Nov-01, say ND instead of a price. I assume that this means "No Data", but it's not ...
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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. ...
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How much USD is there in total? [closed]
If I hypothetically took all of the USD out there in physical currency and in people's savings/checking account then how much would I have?
I suppose this would also include any liquid cash that ...
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Will stimulus create an opportunity to raise interest rates? [closed]
I don't know very much about economics myself, but I have noticed two concerns repeated often lately. One is that the recent injection (?) of trillions of dollars of stimulus money into the economy ...
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What are the practical effects for banking consumers from Fed cutting fractional reserve requirements to zero?
With all the other news, it seems like the fed eliminating the Fractional reserve requirements for banks in is not getting so much attention. Everyone is talking about the Fed Discount rate, which I ...
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what is the actual OBFR loan rate fee?
The OBFR for March 13 2020 was 1.10%. When a company takes a 1 million over night loan, so they pay 1.1% fee of $11,000, or is it annual like credit card and mortgage where the 1.1% gets divided by ...
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Will the Feds pumping 500 billions affect Treasury Bond ETFs?
I was wondering about the question above. I was told that the feds pump the market by buying stocks and bonds which theoretically means that they're going to be investing in bond ETFs. Is my theory ...
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What kind of payments are accepted for the initial purchase of United States Treasury securities?
What kind of payments are accepted for the initial purchase of United States Treasury securities ? (not be to confused with trading done on the secondary market) When a normal person is purchasing ...
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Does federal tax refund check mail contain SSN or any personal information?
I lived in a residential apartment and someone took my federal tax-refund check mail and opened it. It's my first time to file federal tax return and I had no ideal what was in side that mail.
Does ...
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What is the difference between Overnight Repo Operations and Term Operations When talking About the Repurchase (Repo) Market?
According to the NY Fed website:
In accordance with the most recent Federal Open Market Committee
(FOMC) directive, the Open Market Trading Desk (the Desk) at the
Federal Reserve Bank of New ...
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Are Fed repo operations done through the discount window?
Recently the Fed performed repo operations to keep the effective Fed funds rate down and close to its target. Is this the usual way banks get loans from the discount window, using treasuries as ...
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How has the Fed been reducing its balance sheet?
I understand the Fed has been letting its treasury securities mature without reinvesting in new ones, but does the Treasury actually pay the Fed the principal? That is, does the Treasury's reserve ...
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The Fed Lowered Interest Rates, Are they going to buy Bonds?
The Fed just lowered interest rates yesterday by 0.25%.
I haven't heard anyone mentioning a resurgence of quantitative easing (QE).
Are they buying bonds in order to influence the interest rate? If ...
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what is the possibility of USA having negative interest rate [closed]
There has been attempt at reducing the interest rates. Apart from, elderly and savers depend on the bank interest and Stock market is driven by interest rates, the true cost of money if becomes ...
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Can I lend a small amount of my own money to a bank at the federal funds rate?
I have a dollar that I won't be needing tonight, and I hear that banks are in the market for short-term loans. In fact, the present Fed funds rate is higher than the interest rate on any savings ...
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Why does the Fed change rates in quarter points rounding?
I have always seen( since 1990s) that the Fed changes( cut/increase) interest rates in quarter point increment /decrements in USA that affect the world bond, stock market and borrowing rates, while I ...
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What is the effect of a Fed Reserve rate cut on corporate bond funds?
What is the likely effect of a Fed rate cut on corporate bond funds like VTC? I would think if the Fed rate goes down it would make the corporate bonds more valuable as their dividends become ...
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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 of gold in 2011 (Marcus Grubb, managing director World Gold Council). On the same article it states ...
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Fed's interest rate vs. effective rate?
I'm trying to understand the "Fed interest rate".
Wikipedia says:
"Financial institutions are obligated by law to maintain certain levels of reserves... The bank can borrow the requisite funds ...
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How can I recover an 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 ...
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Is The Federal Reserve's Balance Sheet Captured in any of the Money Supply Figures? [closed]
Is the $4T balance sheet captured in any of the money supply estimates or is it separate?
Thank you in advance for your consideration and response.
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Can you use fed interest rates to predict the share price of a bond ETF?
The Fed interest rate is inversely proportional to a bond's value:
When the Fed increases interest rates, your bonds lose value.
When the Fed decreases interest rates, your bonds gain value.
Since ...
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Question about the Federal Funds Rate
As I understand it, the Fed will set a target for what it wants the Federal Funds Rate to be and then try to achieve this goal through its open market operations. Is the amount of volume that the Fed ...
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What are exactly these "interest rates" you hear about in relation to the Fed?
I know what interest is and what an interest rate on a loan, deposit, or bond is. What I do not quite understand, and what gets under my skin, is this generic "interest rate" you read alongside the ...
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Why are bank rates based on the federal interest rate?
From what I have read, the Federal Reserve sets the "key rate", which is the rate at which banks can borrow money from the Reserve. However, I don't understand why both mortgage lending rates and ...
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What will happen to the stock market, once governments increase interest and stop quantitative easing? [closed]
A lot of stock indexes seem to be steeply increasing in price in the last couple of years. For example S&P500 but also lesser known indexes like ATX.
Is this the more or less direct result of ...
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Effect on Bond asset allocation if Equity markets crash?
Let's say "Tom" allocated a large amount of capital in some fund's (it's TIAA-CREF, actually) bond assets.
In our fictional scenario 2 things are going to happen in the next year:
The equity markets ...
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How much control over the Federal Reserve does the U.S. Government have? [closed]
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 ...
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Why would a bank need to accept deposits from private clients if it can just borrow from the Federal Reserve?
As far as I understand, all banks can borrow money from the Central Bank (Federal Reserve in the US) and the rates are (currently) extremely low (or even negative in some cases). If that is so, why ...
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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 ...
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Why does the Fed use PCE over CPI? [closed]
The Fed has used PCE being at 1.6% as an excuse not to raise rates over the past few FOMC meetings even though (core) CPI is running at 2.3%.
After (cursorily) reviewing the difference between the ...
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What is the main purpose of FED increase and decrease interest rate? [closed]
What is the main goal of adjust the interest rate lower or higher, what is the impact on the Country's economy?, and how effects average citizen.
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Deposit Reclassification
My last statement from a given bank contained the following notice:
Deposit Reclassification: Under federal law, the Bank is required to classify our deposits a certain way for regulatory banking ...
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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 ...
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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, ...
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