I was watching a youtube video on a explanation of what the reverse repo facility is and it basically boils down to excess cash banks have that they leave with the Fed for an overnight rate that's better than what's out in the market right now.
So as liquidity tightens and interest rates rise wouldn't it mean the banks have up to 2 trillion to deploy into the economy? Thus being able to help achieve a “soft landing” that the fed keeps talking about?
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