Money & Banking
The Case of the Treasury Account at the Federal Reserve
Steve Cecchetti and Kim Schoenholtz
Monday, November 9, 2020
The Case of the Treasury Account at the Federal Reserve — Steve Cecchetti and Kim Schoenholtz
Money & Banking
The Case of the Treasury Account at the Federal Reserve
Steve Cecchetti and Kim Schoenholtz
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3 comments:
This is a garbage article... no answers just questions..
Treasury increased the TGA to help reduce Reserve Assets at depositories which were surging as Fed asset purchases in 2020 were making the Depositories insolvent...
And Mike has been reporting on these matters for years..
“The level gradually fell until August 2019, when it became clear that banking system reserve balances of $1.4 trillion were insufficient to keep interest rates from rising above target levels.”
LOL they had a RRR of 10% of Deposits and Deposits were over 13T... then in September they reduced Reserves below 1.3T so there were not enough Reserves in the system to meet the 10% minimum...
This is the EXACT OPPOSITE of what Neil says happens in his r3cent post..,
These people might have written some textbook but they and the Fed people can’t even apply 8th grade algebra....
This is a garbage article... no answers just questions..
Yeah, and they are the authors of an M&B text of high repute.
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