NY Fed boss dropped an interesting signal - once they wrap up balance sheet tightening, the real puzzle becomes nailing down what "enough reserves" actually looks like. Classic forward guidance mind games, but matters for anyone tracking liquidity conditions.
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SchrodingersFOMO
· 12-10 17:49
How ironic. Not only are they just shrinking the balance sheet, but now they're playing word games with "enough or not," liquidity will always be their fallback card.
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blockBoy
· 12-10 06:26
The central bank is really playing this trick, and now it is starting to struggle with whether the reserves are enough, why not be so serious when compressing the table before
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GasFeeDodger
· 12-10 01:47
The adequacy of reserves sounds simple, but what does it actually imply? Is the Fed playing number games again?
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WhaleWatcher
· 12-08 04:47
The issue of sufficient reserves, to put it bluntly, is just guessing blindly by looking at the ledger. In the end, reality will prove it right or wrong.
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BearMarketSurvivor
· 12-08 04:46
How much reserve is considered "enough"? This question is like asking how much food you need to stockpile on a battlefield—it depends on when the enemy arrives. The Fed's rhetoric is just leaving themselves room to maneuver: if the data is good, they'll tighten; if the data is bad, they'll ease. I still stand by what I've always said: don't count on central bank "guidance"—it's more reliable to watch the actual liquidity data.
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AllInAlice
· 12-08 04:42
When it comes to reserve limits, it’s always just talk on paper... The question is, who actually has the final say?
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ChainSherlockGirl
· 12-08 04:38
It's all just a feint. The real guessing game for the entire market will only begin when they actually stop.
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AirdropHunterWang
· 12-08 04:38
Later, the Fed just does whatever it wants anyway; in the end, it’s all about printing money.
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ApeShotFirst
· 12-08 04:29
Oh my god, I just want to know who sets the standard for "enough." Are they playing word games again?
NY Fed boss dropped an interesting signal - once they wrap up balance sheet tightening, the real puzzle becomes nailing down what "enough reserves" actually looks like. Classic forward guidance mind games, but matters for anyone tracking liquidity conditions.