GREY:NEVDQ - Post by User
Post by
bogfiton May 28, 2021 9:26am
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Post# 33284979
Half a Trillion Dollars at the Fed Earning Nothing
Half a Trillion Dollars at the Fed Earning Nothing
(Bloomberg) -- There’s so much spare cash sloshing around U.S. funding markets that investors are choosing to park almost half a trillion dollars at the central bank -- earning absolutely nothing.
Usage of the Federal Reserve’s reverse repo facility -- a mechanism that’s part of the central bank’s arsenal for helping to steer short-term interest rates -- surged on Thursday to an unprecedented $485.3 billion. And with the forces driving the dollar glut still some way from abating, that figure could climb further, adding fuel to an increasingly complex debate about what the Fed should do with its various tools to keep a rein on policy."
Gee, gold will do that for ya', and it loves inflation.
b.