Over My Shoulder

Fed policy

March 8, 2012

David Zervos writes about what has been telegraphed as new Fed policy. Great short summation: "... there is really no fundamental difference between an excess reserve balance, a one day Fed bill, a one day reverse repo or a one day term deposit; there are serious perception differences. Having all this overnight cash in the hands of the banks gives the appearance of printing. And in Washington, perception can matter much more than reality. "

Download - fed_policy.pdf