Journal Article
Stress testing the Fed
Abstract: The Federal Reserve has purchased a large amount of longer-term bonds since December 2008. While these purchases have helped support a strengthening economy, the Fed?s resulting financial position may incur significant declines in bond values and net income when interest rates rise. However, analyzing a range of possible future interest rate scenarios?and their associated probabilities?shows that potential losses associated with these declines are very likely to be manageable.
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http://www.frbsf.org/economic-research/publications/economic-letter/2014/march/federal-reserve-interest-rate-risk-stress-test/el2014-08.pdf
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Bibliographic Information
Provider: Federal Reserve Bank of San Francisco
Part of Series: FRBSF Economic Letter
Publication Date: 2014
Order Number: 08