when the fed buys securities, supposedly they do so to provide liquidity. so how do they decide when to sell, and how much?

like
Posting as :
works at
You are currently posting as works at

This is a complex subject. But to (over)simplify they update their near, medium and long term macro economic forecasts and run scenarios to try to predict reactions to changes to the economy as they pull or add liquidity.

Obviously there are huge assumptions and many variables that are second and third order effects. .

Credit card usage on mobile apps increases the velocity of money, while hoarding due to fear or rational expectations reduces velocity of money but at different rates as an easy example.

Then they coordinate messaging from various Fed Governors and Board members to test the reaction to potential changes in totals, durations and methods. Known Doves will hypothesize publicly one thing while a Hawk might say something a week later different to guage sentiment changes. Drastic changes are often signaled by having a known Hawk proclaim a typically Dovish signal for example.

Related Posts

45% of NY State hospitalizations over the past 7 days came from 1 of 10 zip codes. We’re finally at a point where we can have more targeted strategies.

like

Where can I find the holiday calendar in CGI?

Does anyone know the salary range for UK based SVP at Citi?

like

Recently got offer from LTI and they have offered p3 grade.. please help and let me know about this grade and also let me know What kind of Java development projects we can expect in Data privacy business Unit.

like

Hi guys, Could you please help me out on what to be filled here, I've 3 years of experience and I don't think I would be falling under gratuity that will be '0'. But I'm not sure of what to be filled on "Leave Encashment Exemption". I've 170 hours of leave balance. My HRBP dose not respond at all I've been trying to contact her from weeks and there's no response to any of mails nor pings on teams. I really appreciate you for helping me fill this?

Post Photo

I’m trying to get a job as a pharmacist at bcbs. Anyone ever worked there or have experience there? Any tips on how I could make my resume stand out for them?

like

Been single for 5.5 years. So frustrating. Sad face.

likeuplifting

Has anyone ever had an intense online connection? To the point that you felt you were falling for the person.

I feel weird asking this, but I hope I’m not the only one. I would to hear your story.

like

Hang in there, Singles, we got this! ❤️

like

Is bny gives anual bonus? what is the cycle period?

Does anyone have a website or portfolio of projects they have managed? I’m pivoting into Digital production and want to get a head start on how I showcase this for myself. Would love links and examples!

like

Hi Fishes,
BA profile. YOE 8+

I have cleared Nagarro's aptitude test, soon interview will get schedule. Please help me with the interview details so that I can prepare for it.

like

I've got 3 open roles to fill for a client in Chicago, 2 PMO Directors, 1 Change Mgmt analyst. DM me if interested.

like
like

What does an average audit S2 make at PWC? (Low to mid COL)

like
like

Any analysts/associates consider moving to alternative AM? Maybe FoF or doing secondaries and co-investments in PE?

like

When we opt for sodexo.do we get any confirmation mail. I didn't received any.

like

Any suggestions on personal tax accountants and/or estate planners in the LA area?

Looking to vet folks for January - thanks!

like

Additional Posts in Option Traders & Investing

Anybody know why BRQS volume is so high.. roughly 111 million. I mean yes BRQS 🚀 🚀 but why!?

like

What’s on buy or sell list going into the long weekend?

like

Any yolo crypto plays here?

like

Here's to all my shiny happy people holding options! Good luck and may the odds be ever in your favor! -oxo

Post Photo
like

9/22 Thread (General):

like

Yikes. Looking like another red day. What stocks are you watching and at what PT will you get in?

like

Alright which one of you said gdrx is a good play? You owe me money 😤

funny

Anyone familiar with quantum computing? I know this is a ways out but am looking to get in early. Playing big tech is an option but i was thinking to target something further up the supply chain. I was reading that graphene is a major component and it is also used in batteries and solar panels. Anyone have thoughts or ideas to get into quantum computing? Maybe graphene is not the right play.

like

1/26 Thread (General):

like

8/25 Thread (General):

like

Three observations from my market analysis this week:
1) Still work to do in repairing damaged trends with only energy and financials up over the last month
2) Technology has issues with rates, valuations, and supply chains for chips, so this could be heavy on the indexes
3) Setup for the week is concerning with OPEX, lots of data releases, and almost no IVOL premium - lots of event risk and limited hedging in place

like

Is there a point to buying back calls you sold early if they are insanely OTM? Fake example) Sold a PLTR 4/16 $35 strike call for 10 cents, now its worth 1 cent. I read about people buying calls back before expiry if they reach 50% or more of the gains but in this case it wouldn’t make sense right?

like

Short Disney and Apple? Already holding Apple shorts.

like

Any thoughts on Iron Condors on DOCU?

like

10% vix move after Wednesday opex. Will go long uvxy or vxx tomorrow afternoon or Wednesday as a 10% pop in vix is more than likely. Will buy shares to dump in premarket if necessary and will have limit sells for 5 and 10% based on vix close wednesday.

like

NOK next get in while ya can homies

like

How’s everyone feeling about this coming week?

like

9/9 Thread (General):

likehelpful

General announcement: Returning to work on Monday after significant time off, though working from home, but still won’t be posting as much. Can’t ya’ll contribute to making this my career? Haha 😂

like

Like Good and TSLA , FB is also in a short. Like many of the Tech Stocks, it has broken the 61.8% fib line and have retraced up to the 78.4%. The current setup is similar to the highs of the year . .

Post Photo
like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal