When Federal Reserve members talk, investors listen. Federal Reserve Structure: The Federal Reserve consists of the Board of Governors, the Federal Reserve Banks and the Federal Open Market Committee, or FOMC. The board oversees the 12 U.S. Reserve Banks, each of which has its own bank president. Related Link: Is The Dollar Still The Gold Standard Of Currencies?
Many investors are focused on the sell-off in the stock market, but as you can see on the following chart, shares of the iShares 7-10 Year Treasury Bond ETF are in a freefall. The bond market is crashing and this should concern stock market investors. Many large investment funds have huge holdings of treasury bonds.
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