FED Is Biggest Buyer Of Government Debt

The chart above illustrates that the FED has emerged as the “buyer of last resort” for U.S. Treasury debt. The FED’s role as a buyer is particularly important now, as Treasury debt issuance is set to skyrocket from previous levels in 2021 and beyond.

We expect the FED to adjust its future purchases of Treasuries to manage interest rate levels. Therefore, the FED can be expected to be an even…

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store