InvestorQ : Fed Drains $351 Billion in Liquidity from Market via Reverse Repos, as Banking System Creaks under Mountain of Reserves?
Balaji made post

Fed Drains $351 Billion in Liquidity from Market via Reverse Repos, as Banking System Creaks under Mountain of Reserves?

Answer
image
Anjana Aiyar answered.
2 months ago
Follow

Just as banks cannot be short of funds, they also have a problem if there is too much of funds and not enough sources to lend. That is the problem today in the US and in India too. This is an effort to suck out the excess liquidity in the banking system.

0 Views