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Fed Prepares To Go Direct With Liquidity

the increasingly overt actions of the Federal Open Market Committee in the market for short-term funding. Then as now, we view the actions of the FOMC as slowly destroying the private money markets in the US and preparing to very visibly push the big banks out of the transmission chain of monetary policy. One reader of The IRA asked yesterday: “Brother maybe you can help me understand: reverse repo 351BN 5th largest ever. What is going on? Any thoughts? No rush but I haven t heard anyone talking about this. I don’t get with all the excess why banks need to be doing this. Haven’t seen it since march 2020.”

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