Summary
[Fed Meester supports allowing the Fed’s balance sheet to shrink at some point]Cleveland Union Reserve Chairman Meester reiterated his support for the beginning of a reduction in asset purchases in November, and said that the Fed’s balance sheet should be allowed to shrink naturally at some point. At the appropriate time, we need to communicate with the outside world what our plan for the balance sheet is. We hope that there will be a plan by then, as we did last time. At some point, we will start to allow assets to decrease and bring the balance sheet back to a level, and then it will basically normalize, and then it will follow the exchange rate. Demand and other factors. The Fed will have to study the liquidity needs of banks to assess what level of reserves in the system is sufficient. The experience during the epidemic increased the liquidity requirements of banks, but to a certain extent it was offset by the standing repurchase tool set up by the Federal Reserve, because banks knew that they would have lower liquidity if they could ask the Federal Reserve for help. (Huitong.com)
Cleveland United Reserves Chairman Meester reiterated his support for reducing asset purchases starting in November and said it should be allowedMidlandThe balance sheet of the reserves will naturally shrink at some point. At the appropriate time, we need to communicate with the outside world what our plan for the balance sheet is. We hope that there will be a plan by then, as we did last time. At some point, we will start to allow assets to decrease and bring the balance sheet back to a level, and then it will basically normalize, and then it will follow the exchange rate. Demand and other factors.MidlandReserve will have to studyBankLiquidity requirements to assess what level of reserves in the system is sufficient.Experience improved during the epidemicBankLiquidity requirements, but to a certain extentMidlandStanding byRepurchaseTool offset becauseBankKnowing that you can ask the Fed for help, you will have lower liquidity.
(Source: Huitong.com)
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