Return Of The Bull Market? | Weekly Round Up
Inflection Point
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The Fed's Role in Liquidity
I don't think that the Federal Reserve is intentionally targeting a certain level of, they will tell the public we're doing quantitative tightening, but actually we're doing shadow quantitative easing. 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 they have an excess of cash and their cost of funding 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
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