Edmund Simms's avatar
$29.3m follower assets
A tiny note on banking and interest rates
The Fed creates bank reserves (digital assets held at the central bank and used to settle payments between banks) when it buys bonds.

When there are more reserves, banks demand a lower interest rate to lend them to other banks. But when reserves go down, interest rates go up.

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Rihard Jarc's avatar
Quite a substantial dip already in the Reserves.