Did The Federal Reserve Just Back Down? | Joseph Wang
Inflection Point
00:00
The Fed's Influence on the Balance Sheet
The Fed is really influential and they impact a lot of industries. So everyone will try to influence the Fed in certain ways. You always have to be mindful, you know, is this trying to push a particular agenda or is it just really honest research? Got it. I think we covered rates pretty well. Now, let's move on to the balance sheet. Victoria Guida from Politico asked about, she has some fantastic questions. Number one, are we approaching reserve scarcity? Number two, how will treasury issuance impact that? And number three, might the Fed consider lowering the reverse repo rate or RP rate to help banks who are struggling with deposits leaving because of deposit costs?
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