lucasx on Nostr: Let me get this straight. SVB bought bonds at low interest rates. FED hiked the ...
Let me get this straight.
SVB bought bonds at low interest rates.
FED hiked the rates.
SVB's bonds are now worth less (proportional to the hiked rate).
FED is willing to make up for the discounted price.
Does that mean that the FED effectively just doubles it's expected inflation for the period?
SVB bought bonds at low interest rates.
FED hiked the rates.
SVB's bonds are now worth less (proportional to the hiked rate).
FED is willing to make up for the discounted price.
Does that mean that the FED effectively just doubles it's expected inflation for the period?