The Fed on Wednesday poured another $75 billion into the market following a $53 billion rescue by the NY Fed on Tuesday. Overnight lending rates have suddenly spiked, and the Fed is acting to bring them back down to keep markets functioning smoothly. Until this week, the Fed hadn't launched an operation like this since 2008.Federal Reserve Chairman Jerome Powell said during a press conference on Wednesday that these steps were"effective in relieving funding pressures.
'Domino effect'Mark Cabana, rate strategist at Bank of America Merrill Lynch, blamed soaring overnight lending rates on a sharp decline in the amount of reserves in the system."The amount of cash in the banking system is too limited," Cabana said in a note to clients on Tuesday.
The fiat currency the Fed creates is an illusion, it doesn’t exist, however, the interest we repay them is real as it’s from the sweat of our brow. Another most sickening thing about our current situation. Let’s get our cocreative consciousness to change the way things work!
This doesn't seem like a good idea...
WTf why are they doing this if the economy is so hot like president doofess said?