{"id":50260,"date":"2025-10-14T19:38:03","date_gmt":"2025-10-14T23:38:03","guid":{"rendered":"https:\/\/prefblog.com\/?p=50260"},"modified":"2025-10-14T19:38:03","modified_gmt":"2025-10-14T23:38:03","slug":"october-14-2025","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=50260","title":{"rendered":"October 14, 2025"},"content":{"rendered":"

Powell spoke on quantitative tightening<\/a> today:<\/p>\n

Federal Reserve Chair Jerome Powell on Tuesday suggested the central bank is nearing a point where it will stop reducing the size of its bond holdings, but gave no long-run indication of where interest rates are heading.<\/p>\n

Speaking to the National Association for Business Economics conference in Philadelphia, Powell provided a dissertation on where the Fed stands with \u201cquantitative tightening,\u201d or the effort to reduce the more than $6 trillion of securities it holds on its balance sheet.<\/p>\n

While he provided no specific date of when the program will cease, he said there are indications the Fed is nearing its goal of \u201cample\u201d reserves available for banks.<\/p>\n

\u201cOur long-stated plan is to stop balance sheet runoff when reserves are somewhat above the level we judge consistent with ample reserve conditions,\u201d Powell said in prepared remarks. \u201cWe may approach that point in coming months, and we are closely monitoring a wide range of indicators to inform this decision.\u201d
…<\/b>
On a related matter, Powell noted concerns over the Fed continuing to pay interest on bank reserves.<\/p>\n

The Fed normally remits interest it earns from its holdings to the Treasury general fund. However, because it had to raise interest rates so quickly to control inflation, it has seen operating losses. Congressional leaders such as Sen. Ted Cruz, R-Texas, have suggested terminating the payments on reserves.<\/p>\n

However, Powell said that would be a mistake and would hinder the Fed\u2019s ability to carry out policy.<\/p>\n

\u201cWhile our net interest income has temporarily been negative due to the rapid rise in policy rates to control inflation, this is highly unusual. Our net income will soon turn positive again, as it typically has been throughout our history,\u201d he said. \u201cIf our ability to pay interest on reserves and other liabilities were eliminated, the Fed would lose control over rates.\u201d<\/p><\/blockquote>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n6.65 %<\/td>\n7.10 %<\/td>\n24,631<\/td>\n13.38<\/td>\n1<\/td>\n0.0000 %<\/td>\n2,428.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0510 %<\/td>\n4,583.3<\/td>\n<\/tr>\n
Floater<\/td>\n6.29 %<\/td>\n6.58 %<\/td>\n54,936<\/td>\n13.09<\/td>\n3<\/td>\n0.0510 %<\/td>\n2,641.4<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4735 %<\/td>\n3,673.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.75 %<\/td>\n4.41 %<\/td>\n67,710<\/td>\n3.32<\/td>\n5<\/td>\n0.4735 %<\/td>\n4,387.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4735 %<\/td>\n3,423.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.51 %<\/td>\n1.03 %<\/td>\n79,777<\/td>\n0.08<\/td>\n7<\/td>\n-0.0965 %<\/td>\n3,082.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.62 %<\/td>\n5.66 %<\/td>\n45,231<\/td>\n14.42<\/td>\n26<\/td>\n-0.1804 %<\/td>\n3,354.5<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n6.00 %<\/td>\n6.06 %<\/td>\n107,306<\/td>\n13.67<\/td>\n30<\/td>\n0.0408 %<\/td>\n3,044.4<\/td>\n<\/tr>\n
Insurance Straight<\/td>\n5.52 %<\/td>\n5.56 %<\/td>\n54,900<\/td>\n14.54<\/td>\n22<\/td>\n-0.6240 %<\/td>\n3,297.1<\/td>\n<\/tr>\n
FloatingReset<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0408 %<\/td>\n3,621.7<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n5.65 %<\/td>\n4.90 %<\/td>\n129,746<\/td>\n2.79<\/td>\n22<\/td>\n-0.0673 %<\/td>\n2,626.2<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0408 %<\/td>\n3,112.0<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.30 %<\/td>\n5.41 %<\/td>\n53,113<\/td>\n14.47<\/td>\n15<\/td>\n-1.5915 %<\/td>\n3,021.4<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset Ins Non<\/td>\n-23.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 16.75
\nEvaluated at bid price : 16.75
\nBid-YTW : 6.84 %<\/td>\n<\/tr>\n
PWF.PR.S<\/td>\nPerpetual-Discount<\/td>\n-8.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 19.96
\nEvaluated at bid price : 19.96
\nBid-YTW : 6.04 %<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\nInsurance Straight<\/td>\n-6.91 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 20.20
\nEvaluated at bid price : 20.20
\nBid-YTW : 6.06 %<\/td>\n<\/tr>\n
PWF.PR.E<\/td>\nPerpetual-Discount<\/td>\n-3.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 23.17
\nEvaluated at bid price : 23.47
\nBid-YTW : 5.87 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nInsurance Straight<\/td>\n-2.94 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 21.10
\nEvaluated at bid price : 21.10
\nBid-YTW : 5.32 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nInsurance Straight<\/td>\n-2.71 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 21.16
\nEvaluated at bid price : 21.16
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n
CCS.PR.C<\/td>\nInsurance Straight<\/td>\n-2.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 21.97
\nEvaluated at bid price : 22.20
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 22.11
\nEvaluated at bid price : 22.33
\nBid-YTW : 5.62 %<\/td>\n<\/tr>\n
POW.PR.G<\/td>\nPerpetual-Discount<\/td>\n-1.64 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 24.23
\nEvaluated at bid price : 24.53
\nBid-YTW : 5.73 %<\/td>\n<\/tr>\n
PWF.PR.R<\/td>\nPerpetual-Discount<\/td>\n-1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 23.65
\nEvaluated at bid price : 23.92
\nBid-YTW : 5.76 %<\/td>\n<\/tr>\n
IFC.PR.E<\/td>\nInsurance Straight<\/td>\n-1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 23.48
\nEvaluated at bid price : 23.75
\nBid-YTW : 5.51 %<\/td>\n<\/tr>\n
PWF.PR.K<\/td>\nPerpetual-Discount<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 21.75
\nEvaluated at bid price : 22.00
\nBid-YTW : 5.63 %<\/td>\n<\/tr>\n
GWO.PR.L<\/td>\nInsurance Straight<\/td>\n1.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-11-13
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.15
\nBid-YTW : 0.98 %<\/td>\n<\/tr>\n
BN.PR.M<\/td>\nPerpetual-Discount<\/td>\n1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 20.10
\nEvaluated at bid price : 20.10
\nBid-YTW : 5.97 %<\/td>\n<\/tr>\n
PVS.PR.L<\/td>\nSplitShare<\/td>\n2.40 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.01
\nBid-YTW : 4.70 %<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\n4.94 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 22.49
\nEvaluated at bid price : 22.75
\nBid-YTW : 5.61 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\n6.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 23.14
\nEvaluated at bid price : 23.40
\nBid-YTW : 5.30 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
RY.PR.M<\/td>\nFixedReset Prem<\/td>\n120,000<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.10
\nBid-YTW : 3.12 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset Ins Non<\/td>\n56,900<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 23.40
\nEvaluated at bid price : 23.96
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n
ENB.PR.P<\/td>\nFixedReset Disc<\/td>\n55,600<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 21.28
\nEvaluated at bid price : 21.56
\nBid-YTW : 6.36 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset Disc<\/td>\n43,200<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 23.36
\nEvaluated at bid price : 23.76
\nBid-YTW : 5.48 %<\/td>\n<\/tr>\n
MFC.PR.M<\/td>\nFixedReset Ins Non<\/td>\n26,500<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 22.87
\nEvaluated at bid price : 24.08
\nBid-YTW : 5.41 %<\/td>\n<\/tr>\n
TD.PF.E<\/td>\nFixedReset Prem<\/td>\n15,600<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-11-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.97
\nBid-YTW : 4.56 %<\/td>\n<\/tr>\n
There were 7 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
See TMX DataLinx: ‘Last’ != ‘Close’<\/a> and the posts linked therein for an idea of why these quotes are so horrible.<\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset Ins Non<\/td>\nQuote: 16.75 – 21.95
\nSpot Rate : 5.2000
\nAverage : 2.8878<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 16.75
\nEvaluated at bid price : 16.75
\nBid-YTW : 6.84 %<\/td>\n<\/tr>\n

PWF.PR.S<\/td>\nPerpetual-Discount<\/td>\nQuote: 19.96 – 22.24
\nSpot Rate : 2.2800
\nAverage : 1.3080<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 19.96
\nEvaluated at bid price : 19.96
\nBid-YTW : 6.04 %<\/td>\n<\/tr>\n

GWO.PR.H<\/td>\nInsurance Straight<\/td>\nQuote: 20.20 – 22.45
\nSpot Rate : 2.2500
\nAverage : 1.5810<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 20.20
\nEvaluated at bid price : 20.20
\nBid-YTW : 6.06 %<\/td>\n<\/tr>\n

MFC.PR.F<\/td>\nFixedReset Ins Non<\/td>\nQuote: 17.98 – 19.90
\nSpot Rate : 1.9200
\nAverage : 1.5231<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 17.98
\nEvaluated at bid price : 17.98
\nBid-YTW : 5.72 %<\/td>\n<\/tr>\n

GWO.PR.G<\/td>\nInsurance Straight<\/td>\nQuote: 23.50 – 25.00
\nSpot Rate : 1.5000
\nAverage : 1.1428<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 23.20
\nEvaluated at bid price : 23.50
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n

PWF.PR.E<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.47 – 24.59
\nSpot Rate : 1.1200
\nAverage : 0.7696<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-10-14
\nMaturity Price : 23.17
\nEvaluated at bid price : 23.47
\nBid-YTW : 5.87 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Powell spoke on quantitative tightening today: Federal Reserve Chair Jerome Powell on Tuesday suggested the central bank is nearing a point where it will stop reducing the size of its bond holdings, but gave no …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-50260","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50260"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50260\/revisions"}],"predecessor-version":[{"id":50261,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50260\/revisions\/50261"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}