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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: flatsville who wrote (57431)1/12/2001 8:04:41 AM
From: accountclosed  Read Replies (1) of 436258
 
what would we expect to see in the aftermath of a 50 basis point fed funds reduction? fed funds being the market where banks loan reserves to each other. would the fed not have to "print" reserves in order to effect the rate reduction that was announced? fed funds is a supply/demand marketplace. when the fed announces a lower target, don't they have to follow through?
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