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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: pater tenebrarum who wrote (66243)2/9/2001 12:06:21 PM
From: KyrosL  Read Replies (1) of 436258
 
There is a much simpler explanation: Fed Funds rate is below the 5.5% target, so the Fed drains to bring it up to 5.5%. For the last decade or so the Fed has not tried to manage the money supply. It just sets the Fed Funds and discount rates and then adds or subtracts money to maintain the rates it sets.

Kyros
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