/biz/ - Business & Finance

I am the Fed. AMA

This was the biggest heist in history.

Should we end the Fed? Are we even able to? Is it plausible?

So is /biz/ read for tomorrow?

Are the rates going to increase and is the USD going to grow stronger?

If so, then companies will most likely begin to default left and right.

The economy has never been good. We’ve really been in a recession, I think, for the entirety of the recovery. I think the policies that the Federal Reserve has used to prop up the stock market and the real estate market have hurt the real economy. That’s why things are actually getting worse. But on Wall Street, yeah, things look good. But if the Fed takes away those monetary supports, we’re going to be in a bear market. We’re going to be in a deeper recession. We’re going to resume the financial crisis that was interrupted by this monetary policy.

Imagine a scenario in which the U.S. had paid off all of its debt. That would mean there would be no more Treasury bonds and therefore no more Treasury bond market. What security could the Federal Reserve buy and sell to control the money supply / interest rates?

My first instinct would be a basket of highly rated domestic corporate bonds, but I don't know if there would be enough market depth or not.

So if the market downturn we see now is the product of the market catching a hint, a hint, that the economic data was good enough that the fed is going to taper their bond buying and possibly raise interest rates what the fuck is going to happen when the fed actually states their intentions to do either or both of those things?
>numbers go up
>market goes down