Why are senior researchers and former officials urging the Fed to create a hedge fund bailout? At first, this seems to be about the Treasury market and concerns tied to March 2020. It doesn't take too long, however, to see what's really going on here.
Eurodollar University's Money & Macro Analysis
Brookings Treasury market dysfunction and the role of the central bank https://www.brookings.edu/articles/treasury-market-dysfunction-and-the-role-of-the-central-bank/
Bloomberg Fed Urged to Explore Hedge Fund Bailout Tool for Basis Trade https://www.bloomberg.com/news/articles/2025-03-27/fed-urged-to-mull-a-hedge-fund-bailout-facility-for-basis-trades
OFR Hedge Funds and the Treasury Cash-Futures Disconnect https://www.financialresearch.gov/working-papers/files/OFRwp-21-01-hedge-funds-and-the-treasury-cash-futures-disconnect.pdf
FOMC Meeting Minutes March 15, 2020 https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20200315.pdf
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