Alex J. Pollock

Alex J. Pollock is a Resident Fellow at AEI. He joined AEI in 2004 after thirty-five years in banking. He was president and chief executive officer of the Federal Home Loan Bank of Chicago from 1991 to 2004. He is the author of numerous articles on financial systems and the organizer of the “Deflating Bubble” series of AEI conferences. In 2007, he developed a one-page mortgage form to help borrowers understand their mortgage obligations. At AEI, he focuses on financial policy issues, including housing finance, government-sponsored enterprises, retirement finance, corporate governance, accounting standards, and the banking system. He is a director of the CME Group, the Great Lakes Higher Education Corporation, the International Union for Housing Finance, and the chairman of the board of the Great Books Foundation.
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Economics, Financial Services

Who’s got the biggest interest rate risk mismatch of all? The Fed, of course

The financial institution with by far the largest mismatch of anybody is the Federal Reserve itself, with its $2.8 trillion of overnight floating rate deposits funding very long-term, fixed rate mortgage and Treasury securities, with no hedging. So in addition to pumping up asset price inflations through its “QE,” the Fed has sucked a gigantic amount of interest rate risk into itself. read more >