Is This the End of the Fed Funds Rate?

The transcript discusses the challenges and implications of managing the Federal Reserve's balance sheet in light of global regulatory requirements. It highlights the need for high-quality liquidity assets and the pressure on the Fed to maintain or even increase its balance sheet size. The conversation touches on the global impact of these policies, the shift from the Fed funds rate to the overnight bank funding rate, and the unintended consequences of liquidity absorption by banks, which may not benefit the real economy.

What did Tim Geithner imply about the time required for financial adjustments?

How have global regulatory rules impacted large banks' liquidity requirements?

What is the significance of the Fed's balance sheet size according to analysts?

What are the potential consequences of the Fed increasing its balance sheet?

In what ways does the Fed's management of liquidity affect the real economy?