An ample reserve framework increases the risk that Treasury financing needs will dominate Fed independence.
Thanks for this. I made a similar argument a few weeks ago. The origins of interest on reserves deserve closer scrutiny. https://open.substack.com/pub/bergmanb/p/when-does-fed-independence-become?utm_source=share&utm_medium=android&r=1ctddv
Thanks for this. I made a similar argument a few weeks ago. The origins of interest on reserves deserve closer scrutiny. https://open.substack.com/pub/bergmanb/p/when-does-fed-independence-become?utm_source=share&utm_medium=android&r=1ctddv