Enough About Interest Rates!

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Enough About Interest Rates!

zerohedge2021-07-12

Monetary policy isn’t about interest rates. It’s about money.Specifically, it’s about the supply of money relative to the demand to hold it. But you wouldn’t know that from financial journalists’ ...

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Maybl
·2021-07-12
Good
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NewRookies
·2021-07-12
Interesting knowledge
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1
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SSVC
·2021-07-12
Yup Appreciate your response and comments Thanks
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Supertooth
·2021-07-12
REITs be careful if up. Please like…
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- LewisLewis:
  Let it go up! Long live the USD like please!
  2021-07-12
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UTOtrader
·2021-07-12
Lol
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5
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JessHang
·2021-07-12
Interesting insight ?
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2
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Jenjorjack
·2021-07-12
Monetary is money supply and cost of borrowing and the tool is interest rates. Please like and comment.
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3
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- ShirlySuet:
  ya
  2021-07-12
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ChrisCen
·2021-07-12
Latest.Pls liked n comment
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- AlexSG:
  pls like. thanks
  2021-07-12
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- Jenjorjack:
  Done thanks and help me do the same too
  2021-07-12
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XWB
·2021-07-12
Thanks!
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It’s about money.Specifically, it’s about the supply of money relative to the demand to hold it. But you wouldn’t know that from financial journalists’ ...</p>\n\n<a href=\"https://www.zerohedge.com/economics/enough-about-interest-rates\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".SPX","symbol_name":"S&P 500 Index","start_time":0,"source_url":"https://www.zerohedge.com/economics/enough-about-interest-rates","article_id":"1156998035","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1156998035","pubTimestamp":1626053119,"sourceInfo":null,"weMediaInfo":null,"summary":"Monetary policy isn’t about interest rates. 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The Fed has a target for the fed funds rate as part of its monetary policy strategy. But the fed funds rate is not an instrument. That is, it’s not something the Fed directly controls. Rather, the Fed sets its federal funds rate target and then uses its instruments to push the federal funds rate toward its target.The federal funds rate might be thought of as a barometer for monetary policy. But it is not the substance of monetary policy.\nWhat about the so-called administered rates, which the Fed does control? These include the discount rate, which the Fed charges for loans, and the interest rate on excess reserves, which the Fed pays to banks that keep funds in their accounts at the Fed. The discount rate usually doesn’t matter much, because banks try not to borrow from the Fed directly, given the stigma associated with discount window lending. Interest on excess reserves is another story. Especially in a floor system, which the Fed has embraced since 2008, interest on excess reserves matters. But even here the Fed does not have complete freedom. Set the interest on excess reserves too low, and banks won’t keep their funds with the Fed. Set it too high and you choke off economic activity, because banks let capital sit idle rather than investing it in productive projects. The feasible range for interest on excess reserves is determined by factors largely outside the Fed’s control.\nIt’s very important to separate monetary policy from interest rates.Yes, monetary policy affects interest rates, because changing the money supply by buying or selling assets affects yields. But, ideally, monetary policy keeps these effects to a minimum. Good monetary policy is about allocatively neutral demand stabilization, giving markets the liquidity they need to operate at full employment. 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Please like…","listText":"REITs be careful if up. Please like…","text":"REITs be careful if up. Please like…","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/146329690","repostId":1156998035,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5192144,"gmtCreate":1626055000808,"gmtModify":1663230843049,"authorId":3573260715066065,"author":{"id":3573260715066065,"idStr":"3573260715066065","authorId":3573260715066065,"name":"LewisLewis","avatar":"https://static.tigerbbs.com/61c148b5b38fd33489bc18824afe097c","vip":1,"crmLevel":8,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":146329690,"type":1,"supId":0,"prevId":0,"content":"Let it go up! Long live the USD like please!","text":"Let it go up! Long live the USD like please!","html":"Let it go up! Long live the USD like please!"}],"langContent":"EN"},{"id":146320084,"gmtCreate":1626054683948,"gmtModify":1703752422095,"author":{"id":"3574547619690492","authorId":"3574547619690492","name":"UTOtrader","avatar":"https://static.tigerbbs.com/82be6befb29ac8516e463638d3f659d5","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3574547619690492","authorIdStr":"3574547619690492"},"htmlText":"Lol","listText":"Lol","text":"Lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/146320084","repostId":1156998035,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":146384508,"gmtCreate":1626054153904,"gmtModify":1703752405794,"author":{"id":"4088394474156640","authorId":"4088394474156640","name":"JessHang","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4088394474156640","authorIdStr":"4088394474156640"},"htmlText":"Interesting insight ?","listText":"Interesting insight ?","text":"Interesting insight ?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/146384508","repostId":1156998035,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":146316044,"gmtCreate":1626053535288,"gmtModify":1703752385476,"author":{"id":"3554873215379647","authorId":"3554873215379647","name":"Jenjorjack","avatar":"https://static.tigerbbs.com/d9d4687aa5519f0d2fb1b18f916be861","vip":1,"hat":"https://static.tigerbbs.com/f84d87792f02cf78e80ee34979fd31e5","crmLevel":6,"crmLevelSwitch":1,"idStr":"3554873215379647","authorIdStr":"3554873215379647"},"htmlText":"Monetary is money supply and cost of borrowing and the tool is interest rates. Please like and comment.&nbsp;","listText":"Monetary is money supply and cost of borrowing and the tool is interest rates. Please like and comment.&nbsp;","text":"Monetary is money supply and cost of borrowing and the tool is interest rates. Please like and comment.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/146316044","repostId":1156998035,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5191941,"gmtCreate":1626053885968,"gmtModify":1663230845926,"authorId":3582360052677778,"author":{"id":3582360052677778,"idStr":"3582360052677778","authorId":3582360052677778,"name":"ShirlySuet","avatar":"https://static.tigerbbs.com/57d93e0a20280806b45e744b5e2a11cb","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":146316044,"type":1,"supId":0,"prevId":0,"content":"<u>ya</u>","text":"<u>ya</u>","html":"<u>ya</u>"}],"langContent":"EN"},{"id":146313739,"gmtCreate":1626053399621,"gmtModify":1703752382536,"author":{"id":"3573646272982241","authorId":"3573646272982241","name":"ChrisCen","avatar":"https://static.tigerbbs.com/9ed69e076449c1e1af50807f0353afc3","vip":1,"hat":"https://static.tigerbbs.com/f84859c65fc2d7681e28f6b8e9b0535a","crmLevel":2,"crmLevelSwitch":1,"idStr":"3573646272982241","authorIdStr":"3573646272982241"},"htmlText":"Latest.Pls liked n comment","listText":"Latest.Pls liked n comment","text":"Latest.Pls liked n comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/146313739","repostId":1156998035,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5192026,"gmtCreate":1626054326837,"gmtModify":1663230845843,"authorId":3575117380976134,"author":{"id":3575117380976134,"idStr":"3575117380976134","authorId":3575117380976134,"name":"AlexSG","avatar":"https://static.tigerbbs.com/3591d58081030e2f7f1400ea49e88641","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":146313739,"type":1,"supId":0,"prevId":0,"content":"pls like. <u>thanks</u>","text":"pls like. <u>thanks</u>","html":"pls like. <u>thanks</u>"},{"id":5191882,"gmtCreate":1626053553048,"gmtModify":1663230845727,"authorId":3554873215379647,"author":{"id":3554873215379647,"idStr":"3554873215379647","authorId":3554873215379647,"name":"Jenjorjack","avatar":"https://static.tigerbbs.com/d9d4687aa5519f0d2fb1b18f916be861","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-3","templateUuid":"1026c425416b44e0aac28c11a0848493","name":" Tiger Idol","description":"Join the tiger community for 1500 days","bigImgUrl":"https://static.tigerbbs.com/8b40ae7da5bf081a1c84df14bf9e6367","smallImgUrl":"https://static.tigerbbs.com/f160eceddd7c284a8e1136557615cfad","grayImgUrl":"https://static.tigerbbs.com/11792805c468334a9b31c39f95a41c6a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.09.09","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":6,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":146313739,"type":1,"supId":0,"prevId":0,"content":"Done thanks and help me do the same too","text":"Done thanks and help me do the same too","html":"Done thanks and help me do the same too"}],"langContent":"EN"},{"id":146319944,"gmtCreate":1626053345588,"gmtModify":1703752379769,"author":{"id":"4087443275212920","authorId":"4087443275212920","name":"XWB","avatar":"https://static.tigerbbs.com/4ef27121d1015c7d31eb417553b2e797","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4087443275212920","authorIdStr":"4087443275212920"},"htmlText":"Thanks!","listText":"Thanks!","text":"Thanks!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/146319944","repostId":1156998035,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":92,"commentSize":9,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}