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The cash squeeze in wholesale money markets that we’ve been following got a whole lot more exciting on Friday, and now we have the full set of numbers on it. Interest rates soared the most since 2020, further proving the Federal Reserve’s program, which is supposed to keep this from happening, doesn’t keep it from happening. Imagine my shock. We also know that there were plenty of spare reserves available, too. And with more borrowing from the Fed again this morning so far, we have to consider the question of whether this ongoing and escalating tightness is pointing to something bigger.

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