HNY to the Fed's Inflation Machine




"The Federal Reserve would consider buying short-maturity coupon-bearing Treasuries at the end of this year if financing pressures hinder the central bank's ability to administer its interest-rate policy, Fed Chairman Jerome Powell said Wednesday."That would be an expansion of the Fed's current bill-buying efforts. The central bank is increasing the amount of cash reserves in the financial system by buying Treasury bills, which don't carry coupons. Powell also highlighted that money markets have been stable in recent weeks, so there is no sign that such a change would be needed."
"The Federal Reserve has been trying, without much success, to raise the inflation rate to its 2% target ever since the central bank designated an explicit target in 2012."