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 Overnight Rp Facility and the Role It Plays in Banking
The overnight rp facility is it's a tool that the fed designed and opened back in i think it was 2013 2014. It was intended to be there to help the fed lift the federal funds rate off of zero you know when it decided to do so a year or so later. In effect money funds are providing overnight funds to the fed that they can continue to do on an ongoing basis. There was quite a bit of concern when it was being designed that it would increase financial instability by pulling money out of the banking system.
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