In the Market: How Harris, Trump promises could feed market's addiction to the Fed
- Posted on October 30, 2024
- By Business News Today
- 1 Views
In the Market: How Harris, Trump promises could feed market's addiction to the Fed
The Federal Reserve risks overextending its role beyond lender of last resort due to mounting pressures from U.S. deficits and structural issues in the $28 trillion Treasury market. The use of the Standing Repo Facility on September 30 highlighted a lack of market liquidity, prompting concerns about the Fed's deepening market involvement and potential moral hazards.