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Re:Fed raises rates by another 75 bps to fight inflation by marcosdumay on Wednesday September 21, 2022 @04:44PM (#32931283)
> Bank reserves haven't mattered for years as money, but that's pretty much the only lever the Fed holds.

The FED can make they matter again with a pen strike. It doesn't matter because they don't want it to matter.

Re:Fed raises rates by another 75 bps to fight inflation by User23 on Wednesday September 21, 2022 @04:56PM (#32931404)
Not really. A consequence of doing so would be breaking the inter-bank payment system, which is to say crashing the economy with no survivors. The Fed simply must provide adequate reserves to support the payment system. The so-called "dual mandate" of controlling employment and inflation rates is necessarily secondary to that. I mean theoretically sure they could do whatever, but the end result would be the dissolution or restructuring of the Fed by Congress, or worse.