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To: Yosemitest

Two very long articles filled with good information and then you come up with a conclusion that makes no sense.

“...to operate a floor system with the minimum level of reserves necessary to permit the efficient and effective conduct of monetary policy:
“minimally ample reserves” for short.”

The Fed controls short term rates AND dictates overnight bank holding requirements. TWO different things.

Increasing or decreasing reserve requirements is meant to provide liquidity, prevent a “run on the bank” and goes hand in hand with a “tight or loose money” stance. With inflation low there is no reason for “tight money” now.

This is a return to normalcy from Keynesian insanity of the Obama years.


28 posted on 09/21/2019 8:19:44 AM PDT by jdsteel (Americans are Dreamers too!!!)
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To: jdsteel
To me, it spells disaster.
We should get rid of the Fed, and go back to the "Gold Standard".

52 posted on 09/21/2019 1:46:04 PM PDT by Yosemitest (It's SIMPLE ! ... Fight, ... or Die !)
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