Birdwatch Note Rating
2023-03-18 15:25:59 UTC - NOT_HELPFUL
Rated by Participant: 9709CC7447356478AAFFB593651DBAAC4C7F93A04E450595CC443EC50AF06696
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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