When Will the Fed's Repo Operations End? USMR Market Insights

When Will the Fed’s Repo Operations End?

Reports by the Wall Street Journal show that the Federal Reserve has continued to inject billions of dollars into what is called the “repo market” and have even begun adding something called a “reverse repo” into the mix. Reuters has noted that these operations have no clear ending in the immediate future. Learn more in…

Why Is The Fed Securing Billions in Bonds?

Why Is the Fed Securing Billions in Bonds?

The Federal Reserve is once again expanding its balance sheet by buying up significant amounts of bonds in the critical short-term “repo” lending market. Some market experts are worried these actions look very similar to the Fed’s massive bond-buying program during the 2008 financial crisis—despite the Fed insisting otherwise. Learn more in this episode of…

dealing with u.s. debt

Dealing with U.S. Debt

In the past, United States debt had been front and center in news outlets and the general populations attention, though it seems like not many people are talking about it anymore. Many theorize that we’ve become complacent with our situation, to a point where we’re now used to living in debt. We as a nation…

Gold, debt, and you

Gold, Debt, & You

Gold prices hit a 6-year high last Friday, and continued to remain above the key level of $1,400 per ounce on Monday, June 24. Many see gold’s rally as a reaction to uncertainty in our nation’s economic stability, especially given the Fed’s decision last week to keep interest rates on hold and our growing national…

Federal Open Market Committee abbreviation on top of stacks of silver and gold coins

FOMC Fallout: Here We Go Again

As I write this morning, gold has given up two-thirds of its gains following the Fed’s decision last Wednesday to continue its $85 billion-a-month in bond purchases under QE3. One reason for this retreat is that markets overreacted to the news, just as they did back in June when Ben Bernanke’s statement about QE3 was misinterpreted as a signal the Fed would cut back QE3 in September. Buckle your seat belts; we’re in for many more days like Wednesday in the year ahead…

Federal Open Market Committee abbreviation against green background of numbers

Even After the FOMC Decision We’re Still in Suspense

In the wake of the FOMC’s decision, some analysts are lurching to the extreme, speculating that a majority of the FOMC sees the economy as weakening. We won’t know what individual members think about the state of the recovery until the minutes of this week’s meeting are released. But the Fed’s announcement makes it clear a majority of the FOMC believe the economy continues to expand. We also know the FOMC decided to wait for more data before making a decision. There are probably three primary factors that influenced this decision…

Federal Government abbreviation against spreadsheet of numbers

QE3: What’s the Fed Going to Do?

What’ll the Fed do about QE3 when it meets next week? I’ve said before the numbers to watch are those related to employment and the two forces that have driven our anemic recovery—housing and consumer spending. If those numbers indicate the economy is gaining steam, the Fed will start tapering this month. If the numbers cast doubt on the course of the recovery, the Fed is more likely to delay a decision until December.