Fed’s QT Ghosts Are Haunting Powell
Bloomberg Businessweek
00:00
The Fed's Reverse Repo Facility and the Liability Side of the Balance Sheet
When the Fed reduces its balance sheet, essentially they let the bonds mature. They don't use that money to go out and buy new bonds. That's made this a little more precarious because the Fed normally think about assets and liabilities on a balance sheet. Money market funds really love it. But people are warning, money market funds might like keeping their cash in bank reserves.
Play episode from 03:35
Transcript
