Studies from Federal Reserve Bank Further Understanding of Economics (Reserves Were Not so Ample After All*): Economics

2025 JAN 02 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Data detailed on Economics have been presented. According to news reporting originating in New York City, New York, by NewsRx editors, the research stated, “We show that the likelihood of a liquidity crunch in wholesale U.S. dollar funding markets depends on levels of reserve balances at the financial institutions that are the most active intermediaries of these markets.”

The news reporters obtained a quote from the research from Federal Reserve Bank, “Heightened risk of an imminent liquidity crunch is signaled by significant delays in intraday payments to these large financial institutions over the prior two weeks.”

According to the news reporters, the research concluded: “Our study contributes to the broader dialogue surrounding the Federal Reserve’s ongoing quantitative tightening.”

This research has been peer-reviewed.

For more information on this research see: Reserves Were Not so Ample After All*. The Quarterly Journal of Economics, 2024. The Quarterly Journal of Economics can be contacted at: Oxford Univ Press Inc, Journals Dept, 2001 Evans Rd, Cary, NC 27513, USA.

Our news correspondents report that additional information may be obtained by contacting Adam Copeland, Federal Reserve Bank, New York, NY 10045, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1093/qje/qjae034. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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