Source: The Daily Economy
by Alexander W Salter
“Recent movements in short-term loan markets are a timely reminder of a forgotten truth: The Federal Reserve is not the master of credit conditions. It can influence interest rates, but it cannot dictate them. Interest rates ultimately reflect supply and demand conditions in the broader financial system. When those conditions shift, the Fed’s administered rates give way to market realities. That’s precisely what we’re seeing in the repo market now.” (11/24/25)
https://thedailyeconomy.org/article/the-fed-doesnt-determine-the-price-of-credit-markets-do/