Fed Funds Rate

May 10, 2024 . The federal funds rate is the overnight rate that banks charge each other to borrow/lend  reserves.  Some banks have more reserves than they need.  Others (principally large banks) are short of reserves and must borrow from other banks in the system,...

M-2

April 4, 2024 M-2 consists of funds that businesses can use to pay their workers, pay the rent, and keep the lights on, or that consumer can use to pay their rent or mortgage, their car loan, or buy food.  Thus, it is a measure of liquidity in the economy. In March...

Excess Reserves

April 4, 2024 In the wake of the economic meltdown caused by the government’s dramatic measures to halt the spread of the corona virus the Fed  leaped into action.  It boosted its balance sheet by about $3.0 trillion in March and April 2020 primarily via...