5min chapter

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Liquidity Has Fallen Off A Cliff | Joseph Wang & Michael Howell

Forward Guidance

CHAPTER

Is There a Risk That the Fed Will Reverse Repose?

Soma is the amount of treasuries that the federal reserve holds. If rates start to rise, which they clearly are in the us, money market rates will rise at a faster rate than bank deposit rates. So i think that one's got to be cognizant of some of these risks,. and the banks will be lending at the pace they're carrently lending. And inflation is clearly encouraging them to r encouraging demand for loans ah where they're ging to get their funding from.

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