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> That said, I do not immediately agree with either of your points here. On changing the SLR, to the best of my knowledge it gives the bank an option, not place
by nickysielicki 1y ago
> That said, I do not immediately agree with either of your points here. On changing the SLR, to the best of my knowledge it gives the bank an option, not places a requirement on them.
It's hardly just an option, when the other alternative is for it to sit idle while we have 2% inflation. It's scary because it betrays the fact that they're already needing to relax a set of totally reasonable regulations put in place after the GFC to ensure that there is adequate demand in long-dated treasuries.