Note: This post first appeared on Patreon on 31 May 2018
This post is a direct response to the politics masquerading as economics embedded in a Bloomberg post about the Fed's interest on excess reserves (IOER). The Bloomberg post is based on the analysis of Credit Suisse analyst Zoltan Pozsar, a former U.S. Treasury adviser.
And the gist of his analysis is encapsulated in the Bloomberg headline, "As Fed Loses Control of Overnight Rates, Blame Shifts to T-Bills". The analysis is all wrong. And ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.