An MMT site bringing you dogma-free economics without the pleadings of self interest
At the risk of ruining my comic relief status, I agree with you. The Fed has pretty much promised to do what you say. There's no way they will let the gap between the Fed funds rate and the rate paid on Treasuries get too wide. In fact, shorting Treasuries, particularly long-dated ones, at this point in time just seems way too obvious (interest rates at all time lows or non-existent), which should make someone think twice before doing it long-term or sinking too much of their portfolio into what I'd view as a questionable, if not dangerous trade.
Post a Comment