Back in 2008, the Federal Reserve (the “Fed”) launched a new experiment in monetary policy, shifting from a “scarce reserve” system to one built on “abundant reserves.” Beyond its contribution to inflation, this shift has created other, less-discussed problems. Last week the Fed released their latest quarterly financial report of the combined financial position of the 12 Reserve Banks through the second quarter. In this week’s edition of “Three on Thursday,” we dive into that report. Click the link below to find out more.
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