SPDR S&P 500 (SPY)

[Schneidku40]

According to this week’s h.4.1, the fed bought about $50 billion in assets, split between t-bills and mortgage-backed securities, and they sold about $20 billion in central bank liquidity swaps. The purchases seem fairly normal I guess? Fed buying government bonds, no surprise. Maybe stepping up purchases of mortgage backed securities is sorta bad because I’m guessing those might be bad loans they’re taking off the banks’ hands? As for the selling of liquidity swaps, I’m not too sure what that does exactly. A quick search says it’s basically a currency transaction with central banks of other countries. Maybe that’s why the dollar went up this week? Foreign banks seem to want to buy it? And the fed said ok but you’re gonna pay up.