“Jerome Powell is pulling the liquidity rug away to trigger a crisis, exactly like Feb 2020,” he added.
The Bank Term Funding Program was set up by the Federal Reserve last year as an emergency lending program offering loans of as long as one year to credit unions, banks and other depositories that were able to use qualifying assets as collateral.
The idea was to give financial institutions some liquidity after a string of bank failures, including the high-profile Silicon Valley Bank collapse. The bank collapses prompted massive bank runs, with customers all trying to withdraw their deposits at once, and the banks lacked the liquid funds needed to satisfy customers’ cash requirements.
One financial guru said: "It's almost as if they timed this, so that if the "wrong" candidate won the election, they could pull the rug out from the entire economy." Fed chair and Trump could have contentious relationship Earlier this year, president-elect Donald Trump suggested that Federal Reserve chairman Jerome Powell was “political” and may cut rates before the election in an attempt to help Democrats.
The Bank Term Funding Program was set up by the Federal Reserve last year as an emergency lending program offering loans of as long as one year to credit unions, banks and other depositories that were able to use qualifying assets as collateral.
X user @FinanceLancelot cautioned: “The Federal Reserve's emergency BTFP dropped by a shocking $30 billion this week, leaving only $26 billion left.” “Jerome Powell is pulling the liquidity rug away to trigger a crisis, exactly like Feb 2020,” he added.
Now, however, with the federal reserve bank pulling more than half of the credit that was available in the program, banks could be under pressure once again, and some of them may struggle to cover cash withdrawals because their funds are tied up in Treasury Notes.
https://www.naturalnews.com/2024-11-17-fed-credit-btfp-potential-crash.html
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