Reduce stigma on Fed discount window
The guest argued that making the Federal Reserve's discount window and repo facilities more accessible and reducing the stigma around their use would help reduce the banking system's demand for reserves.
Keep reading this one
You've read the thesis and who argued it. A free account opens the argument, what validates it, the risks the show raised, and the moment in the episode where it was said — 3 ideas in full a day, no card.
The Callback
Fed's pause and reduced guidance steepen yield curve
23 weeks between these two statements.
The guest argued that maintaining an 'ample reserves' regime with a large balance sheet creates political economy costs and invites other government entities to use the Fed's balance sheet for politicized purposes, threatening its independence.
The guest argued that making the Federal Reserve's discount window and repo facilities more accessible and reducing the stigma around their use would help reduce the banking system's demand for reserves.