Europe agrees sweeping new action on debt crisis http://tinyurl.com/3ojrlm5
RT @TheFix: A good day to re-post Jason Horowitz’s terrific Grover Norquist profile. http://t.co/I0oQCMg
Fed’s Plosser on default risk, inflation, and more
The following are highlights from a Reuters interview with Philadelphia Federal Reserve Bank President Charles Plosser on Wednesday.
FED AS LENDER OF LAST RESORT IF DEFAULT OCCURS:
“Clearly if something were to happen and financial markets were to seize up, and there were liquidity problems or financial market disruptions, I think the Fed would feel like it had the responsibility to go in and keep markets functioning, as a lender of last resort.”
RT @fstonenyt: Big problems w/the Gang of 6 plan, but it’s far more serious starting point than any other. Still time. http://t.co/jz48ZaD
Factory activity in the Mid-Atlantic region bounced back in July, lifting hopes of a pick-up in economic growth in Q3 http://t.co/IKmD3zW
S&P says 50-50 chance of U.S. downgrade http://t.co/cB1zhA3 via @reuters
@AlexMLeo I saw you walking past @jennablan’s desk, she had stepped away. Come back up!
Senator Sanders says the NY Fed’s Dudley was granted a waiver for his AIG and GE holdings during the financial crisis http://t.co/4sdxK7m
Germany, France reach accord on Greek bailout http://t.co/44Dx1K7
Sack: Fed portfolio carries $1 trln extra rate risk
NEW YORK, July 20 (Reuters) – The Federal Reserve may have
to buy more Treasuries after it eventually shrinks its $2.6
trillion balance sheet, in what would be a technical move to
reduce interest rate risk, a senior Fed official said on
Wednesday.
Brian Sack, head of the New York Fed’s Markets group, told
the Money Marketeers of NYU that the Federal Reserve’s balance
sheet carries interest rate risk equivalent to $1.5 trillion in
10-year Treasury notes. That is $1 trillion higher than normal
for the Fed portfolio, Sack added.
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