Birdwatch Note Rating
2023-03-19 05:47:43 UTC - HELPFUL
Rated by Participant: 622DCF2DE98CF56BAD09A65211132962D76125249ED6936BE43C6824EFC2C1B2
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
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