Projected Evolution of the SOMA Portfolio and the 10-year Treasury Term Premium Effect
7 Pages Posted: 31 Dec 2018
Date Written: September 22, 2017
An earlier Feds note used staff models to provide a projection for the evolution of the SOMA portfolio and an estimate of the associated term premium effect (TPE) on the 10-year Treasury yield. That analysis relied on economic, financial, and monetary policy assumptions as of April 2017. With the Federal Open Market Committee (FOMC) announcing a change in its reinvestment policy in its September 2017 post-meeting statement, this note provides updated projections.
Keywords: Federal Reserve, balance sheet, monetary policy
JEL Classification: E5
Suggested Citation: Suggested Citation