🏦 Fed’s $43B Stealth Move — Buying Treasuries as China Dumps U.S. Debt
In an opinion piece published by MarketWatch, Charlie Garcia referred to the move as "monetary policy on tiptoes." This action has given rise to suspicions that "stealth QE" has come from the Federal Reserve.
In order to alter the money supply and influence interest rates in order to accomplish its objectives, the Federal Reserve has asserted for a long time that these purchases are normal reinvestments of maturing assets when they are made.
After a significant Treasury sell-off from China, the Federal Reserve went on a purchasing binge.
China sold $18.9 billion worth of US bonds in March, according to new data released by the Treasury Department. At the same time, the majority of other nations raised their holdings of US bonds.
China is now in third position after the United Kingdom and Japan, which own $779 billion and $1.13 trillion in US Treasuries, respectively. China's current holdings of US Treasuries amount to $765.4 billion.
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