Timing of US intraday payments may be useful signal – New York Fed paper
Lenders made intrabank payments earlier once Fed expanded balance sheet, researchers say
The timing of US banks’ intraday payments may give useful information on how the Federal Reserve’s balance sheet is affecting the financial sector, three researchers find.
Adam Copeland, Linsey Molloy, and Anya Tarascina look at data on the Fed’s balance sheet and the timing of intra-day payments in the decade before and after the 2008 financial crisis. They present their work in an economic letter published by the New York Federal Reserve.
The researchers find that when the level of reserves
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