6 Comments

1. 

   the-natrix on October 7, 2022 at 4:49 am

   > The Fed is currently paying an overnight rate of 3.05% as of Sep. 22 — the highest yield since 2013. It increased from 2.30% after the central bank recently lifted interest rates by 0.75 percentage points.

   > An increase in the reverse repo rate restricts cash supply and helps to correct inflation.

   > However, whenever banks and other financial institutions have turned to the Fed’s major lending facilities in the past, this has been a clear indicator of economic instability. It was strains on the repo market in back 2007 that brought about the financial panic of that year that led into the 2008 financial crisis.

   Sources:
   https://moneywise.com/investing/stocks/feds-repo-rate-causing-investor-concern

   Fed Reverse Repo Use Hits Fresh Record as Investors Hide in Cash https://www.bloomberg.com/news/articles/2022-09-28/fed-reverse-repo-use-hits-fresh-record-as-investors-hide-in-cash

2. 

   applesauceorelse on October 7, 2022 at 4:49 am

   That’s called ‘contractionary fiscal policy’ friend, it does the opposite of what you think.

3. 

   Qwikmoneysniper on October 7, 2022 at 4:49 am

   Reverse repo is trying to suck money out of the system though.

4. 

   cooljpg on October 7, 2022 at 4:49 am

   How long will it last though 

5. 

   Fawkinchit on October 7, 2022 at 4:49 am

   Wait what, how does this have a correlation?

6. 

   StuartMcNight on October 7, 2022 at 4:49 am

   What do you think the Fed is doing here?