- US Banks Have $1.4T in Excess Reserves Yet Need Daily “Emergency” Fed Actions
by https://moneymaven.io/mishtalk/, 21 Sep 2019
With $1.4 trillion in excess reserves, how can there be a problem with overnight funding?
Emergency Funding Continues
The Fed continued emergency repos today as firms are short of cash.
2/ Total reserves and excess reserves as a fraction of total bank assets. Compare these to pre-crisis history. To imagine that recent repo spikes reflect some inadequacy of reserves or the need for more QE is to misunderstand the nature of the constraint. pic.twitter.com/KsxsUPusgb
— John P. Hussman (@hussmanjp) September 20, 2019