Guggenheim's Minerd Says Fed Is Choking Off Credit Faster Than It Thinks

The video discusses the Federal Reserve's interest rate movements, highlighting the effective Fed funds rate's position near the top of its range. Concerns are raised about the Fed's credibility and control over monetary policy. A technical tweak is mentioned, which adjusts the interest rate paid to banks. The discussion shifts to market impacts, including rising Libor rates and increased funding costs for investment banks. The video concludes with a debate on the number of excess reserves and the Fed's balance sheet reduction, suggesting a faster credit choke-off than anticipated.

What concerns are raised regarding the number of excess reserves in the banking system?

In what ways is the Fed's balance sheet shrinking impacting credit availability?