Jim Mosquera Blog | The Fed Does Not Lead — It Follows | TalkMarkets
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Jim Mosquera is the author of the books, Escaping Oz: An Observers Reflections, Escaping Oz: Navigating the crisis and Escaping Oz: Protecting your wealth during the financial crisis. The books discuss how the public will greatly misinterpret the capabilities of our financial Wizards and what they ...more

The Fed Does Not Lead — It Follows

Date: Friday, September 20, 2019 11:03 AM EST

The Fed has intervened several times this week, injecting billions into the financial system when overnight Repo rates left the Fed's prescribed lanes called the Federal Funds Rate (FFR).  The FFR is the rate banks charge each other when they need overnight loans to meet Fed minimum reserve requirements.  Repurchase Agreements or Repos typically involves an exchange of treasury securities for a short-term infusion of cash to the borrower.  The Repo rate and the FFR should be within close proximity.  This week they were not and only Fed action "normalized" the Repo market.

Is the Fed really in control?  Is this the outer edge of the unraveling of the #omnibubble? You be the judge in this article.

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