How the Federal Reserve Is Now Competing With Banks for Deposits: Enter the Reverse Repo Facility

reverse repo fed banksThe U.S. Federal Reserve could be competing with commercial banks due to a facility called the “overnight reverse repurchase agreement facility,” which has currently drawn in more than $2 trillion in deposits. According to analysts, this has affected bank deposits, as investors run to grab the higher yields it offers compared to traditional banks. The […]

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