Randal Quarles on Inflation, Balance Sheet Reduction, Financial Stability, and the Future of the Fed
Macro Musings with David Beckworth
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Money Market Funds
The problem we're running into is that the tight constraints that we have put, particularly leverage capital requirements on the banking system, are driving deposits out of the banking system. So we're pushing deposits out of what is now the most resilient part of the financial system, the banking system,. and pushing it into a much less resilient part ofthe system, money market funds. Still think that even with the work that we did at the f s b, even if all those proposals were implemented, i think that's still a fragile system.
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