Another Tweak to the IOER Rate Is Put Back on Table, Says Wells Fargo’s Griffiths

The transcript discusses the impact of corporate tax payments and coupon settlements on cash markets, highlighting the Federal Reserve's response to recent market disruptions. It explores potential tweaks to the IOER rate and the importance of determining appropriate bank reserve levels. The discussion also covers concerns about the repo market and the need for long-term solutions to ensure market stability.

What was the combined effect of corporate tax payments and coupon settlements on the cash markets?

• They caused a decrease in net issuance.

• They increased liquidity significantly.

• They had no noticeable impact.

• They removed a substantial amount of cash from the markets.

Why did the Federal Reserve consider tweaking the IOER rate?

• To address disruptions in the money markets.

• To increase the target range.

• To stop the balance sheet runoff.

• To decrease the interest rates.

What is the main concern regarding the New York Fed's interventions?

• They focus too much on short-term gains.

• They ignore the IOER rate.

• They are too aggressive.

• They might be insufficient for long-term stability.

What is a key focus for the Fed in the new monetary policy regime?

• Reducing corporate tax payments.

• Expanding the balance sheet.

• Determining the appropriate level of bank reserves.

• Increasing interest rates.

What might the Fed need to consider if issues persist at quarter and year-end dates?

• Implementing new monetary policy tools.

• Increasing corporate tax rates.

• Reducing net issuance.

• Stopping all interventions.