by sslifer | Apr 27, 2023 | Federal Reserve, NumberNomics Notes
April 27, 2023 When banks lend to consumers and businesses, they put the proceeds into a checking account. At that point the money supply begins to grow. In March and April of 2020 the Federal Reserve purchased $3.0 trillion of purchases of U.S. Treasury securities...
by sslifer | Jun 29, 2022 | Federal Reserve, NumberNomics Notes
June 29, 2022 When extreme measures to combat the spread of the corona virus were put into place in mid-March 2020 and the economy fell off a cliff, the Federal government implemented a $3.0 trillion fiscal stimulus package to help stem the slide. At the same time...
by sslifer | Jun 29, 2022 | Federal Reserve, NumberNomics Notes
June 29, 2022 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 primarily via purchases of...
by sslifer | Feb 3, 2021 | Federal Reserve, Interest Rates, NumberNomics Notes
February 3, 2021 Once the recession began in December 2007 the Fed tried to stimulate the economy and ultimately pushed the funds rate almost to 0%. It remained at that record low level until December 2015 With the funds rate at 0% and inflation persistently falling...
by sslifer | Jan 15, 2021 | Federal Reserve, Interest Rates, NumberNomics Notes
January 15, 2021 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,...
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