OPINION: This $6 trillion problem threatens to push inflation even higher
Stanford Graduate School of Business lecturer Dave Dodson claims the Biden admin's handling of the economy is to 'tinker' with it 'like it's a video game' on 'Your World with Neil Cavuto.'Federal Reserve created
Paying interest on reserves"sterilized" the money because any cash kept at the Fed was not being lent out by banks, and therefore wasn’t multiplying as it normally would through fractional reserve banking. But the inflationary pressure fromECONOMY IS IN THE TANK, BANKS ARE REELING, INFLATION IS SKY-HIGH AND THERE'S MORE BIDEN ISN'T TELLING YOU
Currently, the Fed pays over $750 million in interest every day to banks, hedge funds and other large financial institutions that have parked $5.7 trillion in its vaults. A year ago, that daily interest payment was only $18 million. But that was when the amount needing to be sterilized was much smaller and when interest rates were much lower.Now, like Frankenstein’s monster, the Fed’s anti-inflation inventions are turning on their creator.
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