Discussion about this post

User's avatar
Jim Esposito's avatar

Hey @joe. I’m confused by a concept that you shared in the Debt Limit video on today’s content. If the $1T in new b-bills is sold on the open market, how does the sale of those T-bills and the use of those funds have the effect of draining commercial bank reserve balances at the Fed?

Perhaps I’m confusing two simultaneous efforts, but don’t understand how the TGA spending down its fresh funds had the effect of reducing commercial bank reserve balances at the Fed.

Thanks for clarifying!

Expand full comment
3 more comments...

No posts