The Federal Reserve and the European Central Bank may mop up as much as 90% of the money they pumped into banks over the last decade now that high inflation and interest rates make that extra liquidity unnecessary, a paper by a Fed economist showed on Thursday.
some of their massive bond purchases, which flooded banks with cash when price growth was sluggish and borrowing costs already at zero.
Its author, a senior adviser to the Federal Reserve Board, estimates the Fed could reduce total reserves from their current $6 trillion to between $600 billion and $3.3 trillion depending on whether it would accept U.S. government bonds or less coveted assets in return. Similarly, the ECB could shrink its own provision of liquidity from 4.1 trillion euros at present to as little as 521 billion euros, if it only accepts German government bonds, or 1.4 trillion euros against other assets.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
EUR/USD Price Analysis: Euro retreats towards 1.0900 within bull flag as Fed, ECB talks eyedEUR/USD stays on the bear’s radar for the fourth consecutive day as it reverses the late Tuesday’s corrective bounce off the weekly low amid very earl
Baca lebih lajut »
EUR/USD renews monthly top near 1.1000 on hawkish ECB concerns, Fed Powell’s unimpressive testimonyEUR/USD renews monthly top near 1.1000 on hawkish ECB concerns, Fed Powell’s unimpressive testimony – by anilpanchal7 EURUSD ECB Fed Inflation RiskAversion
Baca lebih lajut »
Construction worker hit by vehicle on I-90A construction worker was hit by a driver on I-90 westbound near Columbia Road in Westlake early Tuesday morning.
Baca lebih lajut »
'90 Day Fiancé': Cleo Talks Being a Transgender Woman and AutisticCleo is opening up about some of her worries given that she's a transgender woman and Christian never dated a transgender person before on '90DayFiancé: Before the 90 Days.'
Baca lebih lajut »
Tested: 2024 Mazda CX-90 Aims to Join a Fancier CrowdThe CX-90 takes on the European establishment with an inline-six and a new rear-drive platform.
Baca lebih lajut »