821 sats \ 2 replies \ @niftynei 25 Jan
what does it mean??
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338 sats \ 1 reply \ @kr OP 25 Jan
good question 😅
i’m no expert here, but i think the idea is that without this program, banks will be under more stress (like they were prior to the introduction of this program due to the declining value of their bond holdings), and the implication of all this is that the fed may lower interest rates to ease this pain.
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30 sats \ 0 replies \ @netstatic 25 Jan
The banks the program was meant to bail out are those with large swaths of liquidity locked up in treasuries. They needed the liquidity from the BTFP because the high interest rates set by the Fed devalued treasuries with older, lower interest rates.
The BTFP allowed banks to get a collateralized loan with their treasuries of an amount closer to the purchase price, and at a reasonable interest rate. The Fed seems confident that large hikes won’t arrive like they have these past couple years but who knows.
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0 sats \ 0 replies \ @justin_shocknet 25 Jan
11.3
Few.
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0 sats \ 1 reply \ @cryptofolyo 25 Jan
also increased the rates?
why would they increase if they are already planning to stop it?
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21 sats \ 0 replies \ @2d 25 Jan freebie
I think there was an arb play - park treasuries / debt for loan at BTFP and deposit the cash in reserve account, collect the spread
probably done to disincentivize that type of usage leading up to the program ending
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