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..but the omniscient Fed knows better than the market? Is that what you are saying?
by internet_user 7y ago
..but the omniscient Fed knows better than the market?
Is that what you are saying?
- bransonf 7y agoWell, they're part of the market. They have their judgments just like every other entity in the market. They use their best judgement to know that the repo market needs a cash injection. They're not infallible, but as regulators... their job is to regulate.
- SCAQTony 7y agoNonetheless, $200-billion has been added to the money supply. (See FRED M2 Index link below from September 19 to the present) $200-billion could have been implemented for more worthy projects than the repo market. In my opinion, the FED needs more oversight from Congress and/or the Treasury. https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2