The Treasury Advisory Committee.
Enough balance sheet to cover the repo stress. This is a seigniorage tax increase, interest forgone on a quarter trillion of debt. A drop in the bucket. They accept a bunch of short term Treasuries from the repo market on the books to back cash loans. This remits some 5 billion back to Treasury, they already remit about 70 billion, I think.
This is a primary dealership deal, it will take liquidity from the private sector and consumer rates should be riskier. The extra seigniorage cost cannot be passed onto Treasury with higher rates, like last time. Consumers will pay it, the Fed will displace a few commercial lenders, and they go elsewhere.
This is a primary dealership deal, it will take liquidity from the private sector and consumer rates should be riskier. The extra seigniorage cost cannot be passed onto Treasury with higher rates, like last time. Consumers will pay it, the Fed will displace a few commercial lenders, and they go elsewhere.
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