How to get your eyes out of the ball
all eyes are on benchmark interest rate fixing, while almost no one looks at central bank balance sheets...
(Almost) All eyes are on benchmark interest rate fixing by central banks including the US FED, and almost no one is asking questions about their gigantic balance sheets and the huge implications of their outstanding stocks, planned flow movements and overarching frameworks for both...
"Are there any limits on the assets the Fed can buy on its own account? Any limits on bank lending to the Fed—only friendly countries, perhaps? Any framework, such as an eye to dollar stability, for setting the interest rate the Fed pays banks for reserves?", asks Mr David Malpass, past president of the World Bank Group (2019-23), on his letter to the WSJ.
Here are few eyes wide open:
Joseph C. Sternberg on his WSJ opinion