The Federal Reserve just bought $43.6 billion in US treasuries in the span of a week, sparking concerns that a quiet quantitative easing operation is underway.

New filings show the Fed purchased $8.8 billion in 30-year bonds on May 8th via its System Open Market Account (SOMA) – a move that followed a $34.8 billion purchase earlier that same week.

The move has triggered allegations that “stealth QE” has arrived, with a MarketWatch Op-Ed from Charlie Garcia calling the move “monetary policy on tiptoes.”

The Fed denies the claims, and has long stated such purchases are routine reinvestments of maturing securities to adjust the money supply and influence interest rates to meet its targets.

The Fed’s buying spree follows a major Treasury sell-off from China.

New numbers from the Treasury Department show China sold $18.9 billion in US bonds in March, while most other countries increased their holdings.

China now holds $765.4 billion in US Treasuries and is in third place behind the UK and Japan, which hold $779 billion and $1.13 trillion, respectively.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The post Fed Quietly Buys $43,600,000,000 in US Treasuries in Alleged ‘Stealth QE’ Operation After China Abruptly Dumps Billions in Bonds appeared first on The Daily Hodl.

The Federal Reserve just bought $43.6 billion in US treasuries in the span of a week, sparking concerns that a quiet quantitative easing operation is underway.

New filings show the Fed purchased $8.8 billion in 30-year bonds on May 8th via its System Open Market Account (SOMA) – a move that followed a $34.8 billion purchase earlier that same week.

The move has triggered allegations that “stealth QE” has arrived, with a MarketWatch Op-Ed from Charlie Garcia calling the move “monetary policy on tiptoes.”

The Fed denies the claims, and has long stated such purchases are routine reinvestments of maturing securities to adjust the money supply and influence interest rates to meet its targets.

The Fed’s buying spree follows a major Treasury sell-off from China.

New numbers from the Treasury Department show China sold $18.9 billion in US bonds in March, while most other countries increased their holdings.

China now holds $765.4 billion in US Treasuries and is in third place behind the UK and Japan, which hold $779 billion and $1.13 trillion, respectively.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post Fed Quietly Buys $43,600,000,000 in US Treasuries in Alleged ‘Stealth QE’ Operation After China Abruptly Dumps Billions in Bonds appeared first on The Daily Hodl.