Michael McKee on Federal Reserve Assets

The video tutorial explains the role of bank reserves and the Federal Reserve's influence on interest rates. It discusses the impact of the financial crisis, leading to the introduction of quantitative easing and changes in Fed policies. The current system, which includes interest on excess reserves and repo rates, is described as more stable. The Fed's balance sheet, including Treasurys and mortgage bonds, is analyzed, and future reserve requirements are discussed, highlighting their implications for the market.

What factors influence the demand for cash in the economy?

What implications does the Federal Reserve's decision on reserves have for the markets?