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A recent survey conducted by the bank with financial executives indicates that banks are comfortable with a smaller balance sheet than the $ 4 trillion currently in place, as well as a top-notch balance sheet. 39, about 800 billion dollars existing before the financial crisis and stimulus measures of the Fed. program.
The minutes of the November Federal Open Market Committee meeting detailed a discussion of the program.
In recent months, the benchmark federal funds rate has moved in tandem with the interest on excess reserves, which the Fed uses as a benchmark for funds.
Fed Chairman Jerome Powell said the committee may need to approve a 20 basis point increase in the IOER rate in an attempt to retain the funds rate.
Fed officials said the hike in the key rate at the highest level of its range was a reaction to the increase in the Treasury's supply and, consequently, to the rise in public debt yields. .
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