There Is NO Market Crash Coming and Here Is Why | Fed Insider
The Mark Moss Show
00:00
Do You Think There's a Dollar Shortage?
There's a market price for dollars, and there's also how much extra premium you have to pay. And the market price is usually set by the Fed, because the Fed controls short-term interest rates. So, if you can't get it meaning it costs more than you're able to pay for it, I think of that as there's a problem with the supply of dollars. But when the Fed opens up this FX swap facility, what we see is that immediately the premium to borrow dollars in the offshore markets disappears or becomes very small. We see that consistently when the FX swap facility opened up during Lehman's collapse during the Great Financial Crisis, and in March 2020.
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