Chairman Powell’s Curious Case for Abundant Reserves
Summary by thedailyeconomy.org
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Chairman Powell’s Curious Case for Abundant Reserves
Last week, Fed Chairman Jerome Powell delivered his semiannual monetary policy report to Congress. Fed watchers will find lots to chew on, but the really interesting material comes in his responses to legislators’ questions. In particular, Powell’s statements about the Fed’s role in credit allocation deserve a closer look. Senator Mike Rounds (R-S.D.) asked the Fed chairman about shrinking the Fed’s massive (~$6.6 trillion) balance sheet. This w…
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