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Rates Traders Are Eagerly Watching the New York Fed’s Toolkit Talk

  • NY Fed staffers are writing blog posts on implementing policy
  • Credit Suisse’s Pozsar also reassesses the possibilities
The New York Federal Reserve building.

The New York Federal Reserve building.

Photographer: Scott Eells/Bloomberg

The market is closely reading a seemingly mundane series of blog posts by the New York Federal Reserve about implementing policy as the central bank prepares to start raising interest rates. 

Co-authored by New York Fed executive vice president Lorie Logan, the daily musings seek to explain how the central bank conducts policy now. At the same time, Credit Suisse strategist Zoltan Pozsar has also been publishing musings of his own, going so far as to speculate that the Fed would adjust its so-called administered rates to accompany the first rate hike, which spurred a flurry of trades betting on this possibility.