60 – Matt Klein on Greece, Optimal Currency Areas, and Safe Assets
Macro Musings with David Beckworth
00:00
The Fed's Balance Sheet and the Reverse Repos
As long as the Fed's balance sheet is open to more institutions, reverse repos are providing that very thing. If you shrink it, you're going to be putting more pressure back under the private sector. I think on one hand, given the world's appetite for U.S. debt, yes, we can handle more, you know, tea bills. But on the other hand, I'm not ready yet to pass judgment that the private sector is not able to provide some more safe assets in the future.
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