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SimplestBitcoinBook | 1 months ago (raw) | root | parent | reply | flag +1 
 What are the likely results of a lower FFER, and in what way does it influence the REPO rate, explained like Iā€™m 5 pls ser ?šŸ™šŸ™ƒ
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Dr. Jeff | 1 months ago (raw) | root | parent | reply | flag +4 
 Generally speaking, if the FFER is higher than the one month (and similar) T-bill yield, then money market funds will park their cash in the ORR facility to earn a higher short-term risk free rate. This results in a contraction of US net liquidity.

Conversely, if the FFER is lower than the one month (and similar) T-bill yield, then money market funds will remove their cash from the ORR facility and buy T-bills. This results in expansion of US net liquidity.
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SimplestBitcoinBook | 1 months ago (raw) | root | parent | reply | flag +1 
 Thank you!