by Summary:
Fixing their potential (to them) bankruptcy problem due to having to potentially pay an IOR amount that would be higher than their portfolio income amount. Looks like they are going to actually codify a new Fed policy whereby they must run the IOR at ALWAYS a rate somewhat below their FFR; insuring they will always have enough net portfolio income to both pay the IOR and operate their Federal Reserve System: Separately, Fed policy makers backed potentially making a “small technical adjustment” of setting the interest on excess reserves, or IOER, rate “modestly below” the top of the federal funds target range to help keep the effective fed funds rate “well within” range. Yeah "well within range" of them always having "money!" ... LOL!This potential (to them) bankruptcy was a big
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Fixing their potential (to them) bankruptcy problem due to having to potentially pay an IOR amount that would be higher than their portfolio income amount. Looks like they are going to actually codify a new Fed policy whereby they must run the IOR at ALWAYS a rate somewhat below their FFR; insuring they will always have enough net portfolio income to both pay the IOR and operate their Federal Reserve System: Separately, Fed policy makers backed potentially making a “small technical adjustment” of setting the interest on excess reserves, or IOER, rate “modestly below” the top of the federal funds target range to help keep the effective fed funds rate “well within” range. Yeah "well within range" of them always having "money!" ... LOL!This potential (to them) bankruptcy was a big
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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Fixing their potential (to them) bankruptcy problem due to having to potentially pay an IOR amount that would be higher than their portfolio income amount. Looks like they are going to actually codify a new Fed policy whereby they must run the IOR at ALWAYS a rate somewhat below their FFR; insuring they will always have enough net portfolio income to both pay the IOR and operate their Federal Reserve System:
Separately, Fed policy makers backed potentially making a “small technical adjustment” of setting the interest on excess reserves, or IOER, rate “modestly below” the top of the federal funds target range to help keep the effective fed funds rate “well within” range.
Yeah "well within range" of them always having "money!" ... LOL!
This potential (to them) bankruptcy was a big potential problem that has been eliminated from the realm of possibility (for us)... will green light any future rapid rate increases without jeopardizing (to them) their solvency due to a lack of net income during any period.
Fed sees next hike soon, signals modest inflation overshoot OK https://t.co/W7iO1NGqUo pic.twitter.com/P9V8SoH5X9— BNN Bloomberg (@BNNBloomberg) May 23, 2018