According to Eric Hickman, veteran bond fund manager and founder of Lantern Capital, a Denver-based advisory and economic research firm, Federal Reserve Chair Kevin Warsh may have tightened economic conditions more by not raising interest rates than he would have by actually increasing them. Treasury bonds lost 115 billion dollars in value after the Fed decision and press conference, according to his calculation. This paradoxical result challenges the conventional view of monetary policy tightening.
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