Tightening policies worse than officially stated, the collateral value of fixed-income assets is diminishing rapidly and we are starting to see the huge deficits of the US government are pushing interest rates even higher
The significant decline in the market value of Treasury notes, bonds, and mortgage-backed securities, which make up over 80% of the Federal Reserve’s balance sheet, could potentially reduce the Fed’s assets by about $1 trillion, surpassing the impact of their …