Search Results

(refine search)

SORT BY: PREVIOUS / NEXT

All:
Title:
Author:
Abstract:
Keywords:

+ Add Search Parameter

Working Paper
The Federal Reserve's Portfolio and its Effect on Interest Rates
Klee, Elizabeth C.; Ihrig, Jane E.; Huther, Jeff W. (2017-07)
We explore the historical composition of the Federal Reserve's Treasury portfolio and its effect on Treasury yields. Using data from 1985 to 2016, we show that the divergence of the composition of the Federal Reserve's portfolio from overall Treasury securities outstanding is associated with a statistically significant effect on interest rates. In aggregate, when the Federal Reserve's portfolio has shorter maturity than overall Treasury debt outstanding, measures of the term premium are higher at all horizons; likewise, when the Federal Reserve's portfolio has longer maturity, term premiums ...
Finance and Economics Discussion Series , Paper 2017-075

Working Paper
The Fed's Discount Window in "Normal" Times
Ennis, Huberto M.; Klee, Elizabeth C. (2024-12-20)
We study transaction-level data of bank borrowings at the Federal Reserve’s discount window from 2010 to 2019. We merge these data with quarterly information on bank balance sheets and income statements. To aid in the interpretation of our empirical analysis, we also develop a detailed model of the decision of banks to borrow from various sources, including the discount window. The objective is to contribute to a better understanding of the reasons why banks use the discount window during “normal” times—periods of relative calm in financial markets. Consistent with our model, we find ...
Finance and Economics Discussion Series , Paper 2021-016r1

Working Paper
The Fed's Discount Window in "Normal" Times
Klee, Elizabeth C.; Ennis, Huberto M. (2021-03-19)
We study new transaction-level data of discount window borrowing in the U.S. between 2010 and 2017, merged with quarterly data on bank financial con- ditions (balance sheet and revenue). The objective is to improve our under- standing of the reasons for why banks use the discount window during periods outside financial crises. We also provide a model of the decision of banks to borrow at the window, which is helpful for interpreting the data. We find that decisions to gain access and to borrow at the discount window are meaning- fully correlated with some relevant banks' characteristics and ...
Finance and Economics Discussion Series , Paper 2021-016

Working Paper
Take it to the Limit : The Debt Ceiling and Treasury Yields
Klee, Elizabeth C.; Ferris, Erin E. Syron; Stevens, Cailey; Cashin, David B. (2017-05)
We use the 2011 and 2013 U.S. debt limit impasses to examine the extent to which investors react to a heightened possibility of financial contagion. To do so, we first model the response of yields on government debt to a potential debt limit "breach." We then demonstrate empirically that yields on all Treasuries rose by 4 to 8 basis points during both impasses, while excess yields on bills at risk of delayed principal payments were significantly larger in 2013. Perhaps counterintuitively, our model suggests market participants placed a lower probability on financial contagion resulting from ...
Finance and Economics Discussion Series , Paper 2017-052

Working Paper
Technology adoption and consumer payments : evidence from survey data
Klee, Elizabeth C.; Hayashi, Fumiko (2002)
Consumers pay for hundreds of goods and services each year, but across households and across goods, consumers do not choose to pay the same way. This paper posits that these differences depend in part on consumers' propensity to adopt new technologies, and depend in part on the nature of the transaction. In order to test these hypotheses, this paper offers comparisons of payment instrument use at the point of sale and for bill payment from a sample of consumers surveyed in 2001, drawn primarily from users of the Internet. The results indicate that consumers who use technology or computers are ...
Payments System Research Working Paper , Paper PSR WP 02-01

Working Paper
The first line of defense: the discount window during the early stages of the financial crisis
Klee, Elizabeth C. (2011)
This paper develops a theoretical model of trading in the federal funds market that captures characteristics of discount window borrowing and the federal funds market during the first year of the financial crisis, including the narrowing of the spread between the discount rate and the target rate; the increased incidence of high-rate trading; and the decline in participation in the federal funds market. The model shows that differences in stigma of borrowing from the discount window across banks can cause the federal funds rate to rise, even when the spread between the discount rate and the ...
Finance and Economics Discussion Series , Paper 2011-23

Working Paper
Auto Finance in the Electric Vehicle Transition
Klee, Elizabeth C.; Morse, Adair; Shin, Chaehee (2024-08-16)
Financing cost differentials tilt the calculus for households toward electric vehicles (EVs). Using 85 million observations on U.S. auto loans, we study households’ credit risk by engine type, seek to uncover the sources and ask if credit risk differentials are being priced. We find that EV borrowers default 29% less relative to internal combustion engine vehicle (ICEV) borrowers with a back-of-the-envelope value of $1,457 in lender savings. To disentangle selection from expost exposure to differential costs of running an EV, we implement a differential shock exposure by treatment model of ...
Finance and Economics Discussion Series , Paper 2024-065

Working Paper
The mechanics of a graceful exit: interest on reserves and segmentation in the federal funds market
Bech, Morten L.; Klee, Elizabeth C. (2010)
To combat the financial crisis that intensified in the fall of 2008, the Federal Reserve injected a substantial amount of liquidity into the banking system. The resulting increase in reserve balances exerted downward price pressure in the federal funds market, and the effective federal funds rate began to deviate from the target rate set by the Federal Open Market Committee. In response, the Federal Reserve revised its operational framework for implementing monetary policy and began to pay interest on reserve balances in an attempt to provide a floor for the federal funds rate. Nevertheless, ...
Finance and Economics Discussion Series , Paper 2010-07

show more (25)

PREVIOUS / NEXT

Fed in Print

Search Results

FILTER BY year

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

FILTER BY Keywords