The Fed has moved from a quantity-based approach (controlling the monetary base) to an administered rates approach (setting rates on reverse repo, fed funds, and standing repo facility); this shift reduces the Fed's ability to fine-tune markets and makes the Fed more dependent on money market participants' behavior.

factualpending

Speaker

Joseph Wang

Evidence Quote

the Fed would try to set interest rates by controlling the amount of reserves in the financial system, but now it's very much done through administered rates. On the lower bound, it's reverse repo facility. On the upper bound, there there is a standing repo facility

Source

The Secret To Maintaining Dollar Dominance | Joseph Wang & Austin Campbell LIVE @ DASForward Guidance
Created: 8/11/2026, 8:05:39 AM

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