Bill Nelson on the Fed’s Discount Window Lending, the Overnight Reverse Repo Facility, and the Shifting Size of the Fed’s Balance Sheet
Macro Musings with David Beckworth
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The Fed's Balance Sheet and the Role of the Dollar in the World
If global investors know the fed will back up it will open up for example dollar swap lines and other central banks when there's a panic fact. That in my mind sends a strong signal we're here we've got this system backed up you know if push comes to shove and on the margin increases the demand for dollar denominated assets wherever there may be. The response might be to come in with a heavy hand but that's that's yet to be written i do want to go back to governor waller's observation about the two being basically replaceable one for the other or substitutable one for theotheri don't agree with that and i think it matters, he says.
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