2) Yes, It's from 2019, but further confirms the move away from LIBOR and potentially replacing FFR (IMHO). Biggest confirmation was in the last paragraph I think
amerivetsecurities.com/repo-sofr-the-…3) It seems LIBOR attached the Fed to a $200T contagion. If the actual Fed Funds Target was “tiny” in 2019, imagine what it is now…
4) Consider the multiple trillions $ that have flooded into reverse repo. Ever since the GFC, there has been a critical need and push for the banks to increase their reserves to combat a financial crisis.
4) “According to the New York Federal Reserve, minimum reserve balances required for the eight largest US banks to meet liquidity needs during a banking crisis on any single day could be close to $1 trillion.”
Thanks to the Fed’s tightening policies, banks hold nearly $2T…
5) If you’re the Fed, WHY have your benchmark rate be attached to a $200T contagion (LIBOR) that forces you to socialize overseas losses for Europe by liquidating your banking sector? Again, Powell (et. Al) is no globalist/is taking a stand to preserve AMERICAN
capitalism.