Peter's Blog

The Fed in a Box Part 2: They Cannot End Quantitative Easing

If the Fed tapers QE, it may reveal waning appetite for long-term treasuries The Treasury may have used its cash balance reserve to anchor inflation expectations If inflation persists, the Fed may have to increase rather than decrease QE Note: By definition, inflation is an expansion of the money supply. In this article, inflation will […]

The Fed in a Box Part 1: They Cannot Raise Interest Rates

3 Key Takeaways The US Government has over $28 Trillion in Debt Much of the debt is short-term, making it extra sensitive to higher rates Higher Interest Rates would immediately start putting strain on the Federal Budget Introduction The US has over $28 Trillion dollars in debt and it continues to grow at an alarming […]