Birdwatch Note Rating
2023-03-19 03:38:48 UTC - SOMEWHAT_HELPFUL
Rated by Participant: DC5AD29EC718312609BB14D4A9D93CD45115C0F093D0CC2CD2FBCF44B370D419
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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