This week Chris sat down with Peak Prosperity’s favorite expert on the Federal Reserve, Axel Merk, to try to make sense of what’s going on with Fed policy.
We’re rushing this podcast to you before the transcript is ready as the situation is so fluid this week. In the 48 hours since the recording of this interview, the Fed has announced it will keep interest rates unchanged for the time being, but will begin a massive increase to its rescue efforts in the repo market, committing to injecting $425 billion over the near future.
That is a truly staggering sum and a clear sign of trouble in the banking system. Most likely, one or more big players are failing and, as a result, banks are becoming increasingly reluctant to lend to one another, even for very short durations.
by springbank1