Discussion Paper

Primary Dealers’ Waning Role in Treasury Auctions


Abstract: In this post, we quantify the macroeconomic effects of central bank announcements about future federal funds rates, or forward guidance. We estimate that a commitment to lowering future rates below market expectations can have fairly strong effects on real economic activity with only small effects on inflation.

Keywords: Auctions; Treasury securities; primary dealers;

JEL Classification: G1;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2013-02-20

Number: 20130220