Banks buy overnight short-term t-bills from the the Fed, at .01% interest to get cash off their balance sheets.
Allegedly, the Fed is charging them .02% interest for cash holdings. Why wouldn't the Fed just charge .01% interest for holding cash, or, start charging .02% interest for reverse overnight repos instead?
Makes perfect sense as it is then, right?
Which means, as things are right now all is well in this inverted realm of deception.
Banks buy overnight short-term t-bills from the the Fed, at .01% interest to get cash off their balance sheets.
Allegedly, the Fed is charging them .02% interest for cash holdings. Why wouldn't the Fed just charge .01% interest for holding cash, or, start charging .02% interest for reverse overnight repos instead?
Makes perfect sense as it is then, right?
Which means, as things are right now all is well in this inverted realm of deception.
Huh?