Nice figure of speech “injected!”… wow…They are referring to the T of reserve balances currently in the RRP… why are they in that Fed account and not in Depository accounts where they could be utilized to settle unanticipated withdrawals without requiring sales of other HQLA at current reduced prices due to the dumb monetarists rate increases?Why did the dumb Art degree people at the Fed reduce the RRR from 10% to 0% in the first place?What is bad about requiring Depositories to maintain a ready USD balance of direct CB liabilities of a small 10% of their deposit liabilities in case of unanticipated withdrawals?If the deposits flow to another depository (ie withdrawals) from available reserve balances that transaction actually INCREASES the Depository’s SLR with ZERO effect on
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
John Quiggin writes The era of privatisation is nearly over. But cleaning up the mess left behind will take years
Lars Pålsson Syll writes Job creation
Angry Bear writes Suppostion? Economic performance is stronger when Democrats hold the White House
Editor writes Why do domestic food prices keep going up when global prices fall?
Nice figure of speech “injected!”… wow…
They are referring to the $2T of reserve balances currently in the RRP… why are they in that Fed account and not in Depository accounts where they could be utilized to settle unanticipated withdrawals without requiring sales of other HQLA at current reduced prices due to the dumb monetarists rate increases?
Why did the dumb Art degree people at the Fed reduce the RRR from 10% to 0% in the first place?
What is bad about requiring Depositories to maintain a ready USD balance of direct CB liabilities of a small 10% of their deposit liabilities in case of unanticipated withdrawals?
If the deposits flow to another depository (ie withdrawals) from available reserve balances that transaction actually INCREASES the Depository’s SLR with ZERO effect on Capital…
Hard to understand how the Art degree brain works… 🤔
JUST IN: 🇺🇸 $2 trillion could be injected into the US banking system by the Federal Reserve's emergency loan program, JPMorgan says.
— Watcher.Guru (@WatcherGuru) March 16, 2023