Birdwatch Note Rating
2023-03-18 22:20:17 UTC - HELPFUL
Rated by Participant: EF902E1DD07D569E313A7A34B131CC22DB623844C4450041B1F03A1883AEBFB3
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