Duration Mismatch And The Fed

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This excellent chart was featured in a commentary written by my friend Christopher Whalen.

Overnight reverse repurchase agreements - Treasury securities sold by the Fed Reserve in the Temporary Open Market Operations; Securities held outright; Securities held outright - Mortgage-backed securities

Here’s the link to his analysis: “QT & Powell’s Liquidity Trap.”

Let’s add a couple of points to the analysis. As Chris

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