This site follows key monetary policy moves and economic events. I focus on news articles, announcements, and other articles that focus on the recent financial crisis. Also included are references for policy actions, key interest rates and economic indicators.
Friday, February 26, 2010
Politi: Treasury's $200bn debt plan
"...By bolstering its Supplementary Financing Programme, the Treasury would help the Fed remove $200bn in reserves from the financial system. Some economists said that this would help bring the Fed’s main interest rate closer to the upper end of its current 0-0.25 per cent target...However, the move was described as a “purely technical adjustment in liquidity” by Joseph Abate of Barclays Capital. He said: “The $200bn worth of reserves drained ... is unlikely to have a noticeable effect on the effective funds rate, which remains locked under 15 basis points...”"
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