2min chapter

Forward Guidance cover image

The European Central Bank Goes On The Offensive | Daniel Neilson (LIVE)

Forward Guidance

CHAPTER

Reverse Repo Facility

The Fed is supplying its collateral to Financial institutions so that they can lend it to the Fed I mean, it's not that the Fed needs money. It doesn't fit into money But and then they get a rate that is generally commensurate with the Fed funds rates. If you're a bank Then you put your deposits on the liability side as well So the feds got reserve deposits which we understand it's also got this overnight repo facility Reverse repo facility on the liabilities side.

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