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US Fed will start buying Treasury bills to manage market liquidity

37 points by nimbius

by Ancalagon

1 subcomments

Like watching a train wreck in slow motion. Maybe its not explicitly for quantitative easing (hah) but this devalues your dollar and your hard work even more.

by NewJazz

0 subcomment

Title was changed from original. Fed has always bought treasury bills. This is just doing so with more nuance. This doesn't mean they've begun QE (yet).

by vdupras

4 subcomments

Does it do this often? This is quite literally "printing money", right? Wasn't the Fed not supposed to be allowed to do that?
I'm guessing that if it doesn't do that, short term treasury yields will spike, and they don't want that to happen?
Doesn't this make treasury yields meaningless? If they're subsided by the Fed, then it means that nobody but them will buy them, since this subsidy means that short term treasuries are noncompetitive with other asset classes.
What am I missing?