
sr20221103_MoneyHQ
Divine Intelligence, etc
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The Fed Account, Is It a Loss?
The Fed accounts for negative income. So where's this loss coming from? Here you go. By paying interest to a mix of banks, money funds and others, the Fed keeps the federal funds rate in its desired range. As part of its current regime, the Fed is now paying 3.05% rate on over $2 trillion in money funds that have been pouring daily into the Fed's reverse repo facility.
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