Chipotle bumps pay to 15$, adds benefits in push to hire 20k

Re:Chipotle bumps pay to 15$, adds benefits in push to hire 20k by arcticbull on Tuesday May 11, 2021 @10:45PM (#27126040)

The Fed doesn't print currency - thats Treasury, although the Fed holds and distributes it to depository institutions! They control the money supply by reducing the fractional reserve lending rate at banks (reducing supply of loans), increasing interest rates (reducing demand for loans) and unwinding their balance sheet by selling back purchased assets (largely t-bills, reducing circulating supply directly).

The money supply of centrally banked economies is mostly debt/demand driver, not supply driven. Money is created when lent, and destroyed when repaid. By tweaking parameters, the Fed is able to manage circulating supply.

It's actually a really elegant system, IMO.

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Re:Chipotle bumps pay to 15$, adds benefits in push to hire 20k by temp20160423 on Wednesday May 12, 2021 @01:20AM (#27126887)

The last sentence is only true if you believe the Fed will actually sell back the assets. When I look at this chart, https://fred.stlouisfed.org/series/WALCL, I have very little confidence that the Fed will sell a meaningful portion back (notice the Fed already gave up BEFORE covid when we supposedly had one of the best economies in recent times). In fact, it looks to me that the assets held by the Fed are growing exponentially and definitely growing faster than our productivity growth.

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Re:Chipotle bumps pay to 15$, adds benefits in push to hire 20k by imtringued on Wednesday May 12, 2021 @06:29AM (#27128698)

2018 to 2019 was a 15% decrease of the Fed's balance sheet. That was actually quite a decent pace.

At $0.6 trillion/year it would take 12 years to unwind the 2021 balance sheet. That's worrying but not impossible.

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