Podcast

Paper from Fed board and regional Feds

Fed’s official Repository

Paper	Summary	Link
Is the Last Mile More Arduous?	In terms of policy, this implies that the Fed need not view the final phase of the disinflation process as fundamentally different from the other phases. Specifically, the Fed need not exert some sort of extraordinary effort to consistently bring inflation down the last few percentage points to reach its 2 percent target. From a risk management perspective, believing that the last mile is more strenuous could cause the Fed to tighten policy more than is necessary, which increases the likelihood of a recession and a sharp increase in unemployment.	Link
Money Market Fund Repo and the ON RRP Facility	The regression results show three key points: - Having MMFs that are ON RRP counterparties boosts the private repo rates that a fund family receives. After controlling for fixed effects, our results suggest a one standard deviation increase in RCP share leads to a 2.5% or greater decrease in the share of repo occurring below the ON RRP rate. Meanwhile, a one standard deviation increase in the share of omnibus accounts leads to an 0.6% decrease in the share of repo below the ON RRP rate. - More valuable fund-dealer relationships, as measured by dealer share – the relative importance of a fund’s lending to a dealer in 2019 leads to more lending at sub-ON RRP rates, so long as dealer-specific effects are controlled for as in our second and third specifications. In these two specifications, a one standard deviation increase in a fund’s share in total dealer repo leads to a roughly 0.3% increase in repo occurring below the ON RRP rate. - Concerns about managing late-day flows, as proxied by greater flow volatility, also leads to more lending at sub-ON RRP rates. A one standard deviation increase in flow volatility leads to a 0.4% increase in repo occurring below the ON RRP rate.	Link
GPT Deciphering Fedspeak: Quantifying Dissent Among Hawks and Doves		Link