Sorry!! The article you are trying to read is not available now.
HOT TAGS:  

Federal Reserve Begins Purchasing Treasury Inflation Protected Securities

Print comment Post Comments
NOW THIS IS HAPPENING
DailyFeed
That remarkable headline is actually true. The Fed is now buying Treasury Inflation Protected Securities (TIPS) as part of their mortgage reinvestment program that began last month. What they're doing is reinvesting the principal payments of their mortgage holdings, a move to "prevent money from being drained from the financial system."

So far the Fed has bought $550 million worth of TIPS maturing from 2019 to 2029.

What, exactly, are TIPS? This handy guide explains: "Treasury Inflation-Protected Securities, or TIPS, provide protection against inflation. The principal of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, you are paid the adjusted principal or original principal, whichever is greater."
POSITION:  No positions in stocks mentioned.

TICKERS