As the stand-off over raising the nation’s debt ceiling drags on, a rational discussion of the issues at play has often been lost amid the political rhetoric. For example, who holds the debt? (Americans, mostly.) Is China the biggest foreign holder? (No, Japan is.) Is American financial stability ... READ MORE >
Treasury securities
As turmoil grows, foreign banks and investors flock to the dollar
Intensifying financial stress and increased volatility have shaken global markets and stimulated a move of capital into the safety of the American dollar. Whether it is the purchase of short-term Treasury notes, the depositing of cash in U.S. financial institutions or a greater use of the Federal ... READ MORE >
Monetary policy tightening, the bond market and the business cycle
Central banks in developed economies are contending with a series of shocks that have threatened price stability and, ultimately, economic growth. Now, these shocks, which include inflation, interest rate increases and energy market turmoil, are all showing up in fixed income markets. With consumer ... READ MORE >