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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: UnBelievable who wrote (234002)4/7/2003 12:34:20 PM
From: GraceZ  Read Replies (2) of 436258
 
It's like saying that the broker who lends you margin is trying to manipulate you into whatever market activity you are involved with. The Fed reacts to changes in the demand for funds. It's what they were chartered to do. RPs and their reverse are primarily done to keep the FF rate from rising above or below the the interest rate target. If you want to look at open market operations that are designed to change the overall money supply you have to look at coupon passes, or permanent additions.
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