Posts tagged 'Fed Transcript 2008'

And yes, the Fed was really, really concerned about Treasury fails in 2008

Further insights into the Fed’s financial-crisis priorities by way of the December 2008 FOMC meeting transcript, released this Friday. This time we refer to their discussion about the possible unintended side-effects of zero-lower bound policy and in particular the spike in Treasury fails that was occurring at the time.

It’s worth reminding that at the time, only a few market commenters really understood the implications and severity of a spike in Treasury fails to deliver/receive. Read more