by Mike ‘Mish’ Shedlock
Fed minutes show “severely constrained” markets. Separately, the Richmond Fed president asks some interesting questions.
The Minutes of the Latest FOMC Meeting are out. For a change they are interesting, and also very long.
Eight Key Points
1. Treasury market functioning was severely impaired. Market depth was extremely thin, and bid-ask spreads widened sharply.
2. Financing conditions for nonfinancial firms were strained.