You can find the full text of the study here
First of all lets zoom back to May 2021 when Bloomberg posted this opinion piece that has aged like milk. Apparently hitting $450B once showed just how "in-control" The Fed was of our financial situation. "Nothing to see here, in fact $450B shows just how strong everything is."
In this 2015 study I linked by the Board of Governors, amongst the discussions of why the ON RRP was created as well as its usefulness, the authors cautioned that if the ceiling of ON RRP became too high and it offered "full-allotment" meaning "Put as much money as you want here" it could create problems. What sorts of problems? Well,
>...there may be adverse effects stemming from the possibility that such a facility—particularly if it offers full allotment—could allow a very large, unexpected increase in ON RRP take-up that might enable disruptive flight-to-quality flows during periods of financial stress. In addition, very large usage of an ON RRP facility, particularly if it were permanently in place, would expand the Federal Reserve’s footprint in short-term funding markets and could alter the structure and functioning of those markets in ways that may be difficult to anticipate. Indeed, FOMC policymakers have expressed concerns about a sustained expansion of the Federal Reserve’s role in financial intermediation and the risk that ON RRPs might magnify strains in short-term funding markets during periods of financial stress.
(emphasis mine).
Could you say that again another way and louder for those in the back?
>...a facility that could allow a very rapid and unexpected expansion of ON RRP might exacerbate disruptive flight-to-quality flows during a period of financial stress and thus could undermine financial stability. Market observers and policymakers both have described such risks. For example, the Minutes of the June 2014 FOMC meeting state that “[m]ost participants expressed concerns that in times of financial stress, the facility’s counterparties could shift investments toward the facility and away from financial and non-financial corporations, possibly causing disruptions in funding that could magnify the stress"
What they are saying is that if the ON RRP decided to let too much money park there overnight, and for a prot
... keep reading on reddit ➡
At "Toward an Inclusive Recovery: Improving Labor Force Attachment and Financial Security among Low-Income and Marginalized Workers," a research seminar sponsored by the Board of Governors of the Federal Reserve System, Washington, D.C. (via webcast)
>Welcome, and thank you for joining us to discuss a number of topics important to the nation's economy.1 This research seminar is the Federal Reserve's first in a new series called "Toward an Inclusive Recovery." The series is cosponsored by the community development offices of all 12 Federal Reserve Banks as well as the Board of Governors. Today's opening seminar is hosted by the Board and will focus on what the recovery may look like for workers. Since this event is a community development initiative, we have invited accomplished researchers to discuss their work—and what practical lessons we might draw from it—to inform community development practice and public policy considerations.
>
>This focus of this series on an inclusive recovery holds special importance as we think about the uneven economic effects from the pandemic. For many of us, combating the virus meant being disconnected from friends and family. Furthermore, most children were not permitted to return to school, leaving parents and caretakers to adapt.2
>
>Yet while the spread of the virus universally upended our personal lives, our employment situations frequently dictated our ease of adaption. In November of last year, for instance, almost half of workers with a college degree or more said that they worked entirely from home, according to the Board's Survey of Household Economics and Decisionmaking (SHED). At the same time, only 10 percent of workers with a high school degree or less said that they worked entirely from home.3 Additionally, people who lost jobs were typically those who earned less or had less education.4 Hispanic and Black workers were hit harder than others, on average, reversing the recent improvements they had been seeing.[5](https://www.federalreserve.gov/newsevents/sp
https://go.theregister.com/feed/www.theregister.com/2021/06/29/randal_quarles_bitcoin_cbdc_speech/
So the age old debate continues with BTC as there is low confidence it can be used directly as a payment system due to it's design.
Is there no awareness in the media or governments that it's the store of value coin and other "coins" are more suitable for transactional use? Or is this all just anti-crypto fud?
Judy Shelton believes that the Fed should go back to the gold standard, FDIC insurance shouldn't be a thing, and that we need a global currency backed by a universal gold reserve. How will this thought process effect decisions the Fed makes during her term? How would each of these policies, if actually pushed through, would effect our modern economy?
Introduced: Sponsor: Rep. Gregory Meeks [D-NY5]
This bill was referred to the House Committee on Financial Services which will consider it before sending it to the House floor for consideration.
Rep. Gregory Meeks [D-NY5] is a member of the committee.
