Reserve Requirements Should – and Must – Be Set to Zero (Uh! Has the FED Lost Its Mind?)
And They Have Been at Zero Since March 2020
It seems like the Federal Reserve authorities have lost their minds, forgetting the purpose of their own traditional RESERVE REQUIREMENTS:
Official reserves held by the FED cannot be used to met a liquidity crisis nor bank run. Only excess reserves can be used for that. Apparently, the FED wanted to increase excess reserves by abolishing reserves, but:
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