Solution-What is the fed exit strategy

What is the fed exit strategy

Assignment Help Basic Statistics

Reference no: EM131987992

What is the Fed's exit strategy? Has it changed over time? Will it work? Are the size of mutual funds a problem? Explain.

There was an answer with this question, but it's out of date (answer from 2014). Could you give me a more current and up-to-date answer to this question?

Here is the 2014 version answer just in case:

The current exit strategy is assets sales after policy rate hikes. In 2011, it was asset sales before policy rate hikes. Short-term forward guidance would have to be changed ("considerable period") both before the first policy rate hike and the long term "long for long" pledge would have to be modified as well. The balance sheet will be large for a very long time, increasing the chancing of an asset bubble or price inflation developing. No one knows for sure if it will work. Yes, the size of mutual funds is a problem as they may be prone to fire sales in a replay of the summer of 2013. So leverage might not be the big problem once rates rise.

Reference no: EM131987992

Questions Cloud

Unemployment rate and forecasts of future : Do you think the Fed's recent changes to explicitly tie the next policy moves to the unemployment rate and forecasts of future inflation

Describe two resources you have available to achieve : At the beginning and end of this course you were asked to think about reasons why you wanted to succeed in your Ashworth College education.

Is the federal budget deficit a problem : Is the federal budget deficit a problem? And if it is, what can be done about it?

What is the greater threat to your privacy : What is the greater threat to your privacy? The government or private industry? Defend your position.

What is the fed exit strategy : What is the Fed's exit strategy? Has it changed over time? Will it work? Are the size of mutual funds a problem? Explain.

A brief description of two emerging issues : Explain why it is critical to your professional development to be involved with these and other professional psychology organizations.

What are the four main types of financial services : What are the four main types of financial services? Which type of financial services will help you accomplish your short, intermediate

Compare and contrast human capital : Compare and contrast human capital, H, and physical capital, K. How is H different from labour, L?

How he or she can start to solve the problem themselves : You decide to work with the student by providing empowering resources that outline how he or she can start to solve the problem themselves.

User Account

All Pages

What is the fed exit strategy

Reference no: EM131987992

Reference no: EM131987992

Questions Cloud

Reviews

Write a Review

Basic Statistics Questions & Answers

Statistics-probability assignment

What is the least number

Determine the value of k

What is the probability

Binomial distributions

Caselet on mcdonald’s vs. burger king - waiting time

Generate descriptive statistics

Sampling variability and standard error

Estimate the population mean

Conduct a marketing experiment

Find out the probability

Linear programming models

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT