Fed exit options, table du jour | FT Alphaville

Fed exit options, table du jour

Which part of future Fed tightening “is now completely up in the air”?

The answer (according to Societe Generale) is in the useful table below… click to enlarge:

It compares the Fed’s ‘Exit Strategy Principles’ of June 2011 with how policy seems to be very carefully developing now, $1,100bn or so asset purchases later.

One other big change here, of course — the rise of a ‘new’ reverse repo for draining reserves (carried out in advance of the first rate hike, say SocGen).

Plus the rise of Larry.

Related link:
The all you can eat collateral buffet – FT Alphaville