The Fed: In a Monetary and Macro Bind?
Real Vision: Finance & Investing
00:00
The Functional Mechanisms of the Federal Reserve
The way we often talk about the Federal Reserve is actually technically incorrect. The Fed doesn't set the particular interest rate that gets all of the headlines. What a reverse repurchase agreement essentially does is it allows the Fed to borrow money in the private economy. In other words, fuel inflation in order to try to break down by sterilizing all this money.
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