Birdwatch Note Rating
2023-03-18 12:05:02 UTC - SOMEWHAT_HELPFUL
Rated by Participant: 3105DF48061848BDEDE2BE2713AA44FA22AB0CCC1630331269E2A05BF3C48745
Participant Details
Original Note:
The Fed opened the discount window that allows banks to post Treasuries/other securities in exchange for cash. A bank can post discount bonds (worth 95) for 100 from the Fed. There is only a modest % of money creation relative to the $300B. https://www.bloomberg.com/news/articles/2023-03-17/what-is-the-fed-discount-window-why-are-banks-using-it-so-much?srnd=premium
All Note Details