Return Of The Bull Market? | On The Margin Round Up
Forward Guidance
00:00
The Fed's Role in Liquidity
I don't think that the Federal Reserve is intentionally targeting a certain level of this. The facilities that the Fed has set up, like the reverse repo facility, or the discount window, it's up to the banks to take up how much lending they want. If JP Morgan wanted to borrow $100 billion tomorrow via thediscount window, it could. It just wouldn't make sense because their cash is close to zero. And that discount window funding would cost 5%. So when people put money in or out of thereverse repo facility, it's not really the Federal Reserve quote doing it. It's just the facilities just there. But I think that for liquidity to continue to increase, the
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