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?
Published at
2023-03-13 20:24:28Event JSON
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"content": "Let me get this straight.\nSVB bought bonds at low interest rates.\nFED hiked the rates.\nSVB's bonds are now worth less (proportional to the hiked rate).\nFED is willing to make up for the discounted price.\nDoes that mean that the FED effectively just doubles it's expected inflation for the period?",
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