Read the fine print
I couldn’t follow the statement “the banking system's capacity to absorb new reserves was reached, or nearly so. “. Any chance you’re planning to write a few lines on basel III? (Or why The FED can no longer create new reserves for banks )?
See the link to Zoltan Pozsar's piece in https://neilson.substack.com/p/on-rrp. The capacity to absorb new reserves is about the SLR.
I couldn’t follow the statement “the banking system's capacity to absorb new reserves was reached, or nearly so. “. Any chance you’re planning to write a few lines on basel III? (Or why The FED can no longer create new reserves for banks )?
See the link to Zoltan Pozsar's piece in https://neilson.substack.com/p/on-rrp. The capacity to absorb new reserves is about the SLR.