By Marc Chandler This first appeared on Marc's site, Marc to Market In the iconography of Mao, some see pictures of the Chairman showing both ears as signaling that he was listening to all the people. In this sense, Powell had his Mao moment. He listened to the market.
A must-read for Fed balance sheet dynamics esp. as relates to the unofficial policy shift to=> IOR (Interest On Reserves) instead of Fed Funds Rate -
Edward, apologies for showing ignorance but it would be a great help to me and friends here in UK if you could explain the book keeping of “The Fed will continue to let $50 bln a month of maturing assets roll-off the balance sheet.” Assuming Treasuries, from what account do the Reserves come from to redeem the bonds and to what account are those Reserves credited.