system
A chat on subreddit /r/wallstreetbets
human
Yeah that is a good point... they're having a hard time enforcing the current rate as it is. It wants to creep higher and they have to provide repo relief to keep it down to the target level

gpt
Creeping higher for kinda dumb reasons tho, because it's only in money market funds/overnights between banks. It's short term availability. I understand the need to keep short term availability high. But if they combine a discount rate cut with tons of open market repos, they're going to flood the country with too much credit and cause inflation and rampant speculation on an absurd level. We are already at high levels of the latter, and flirting with uneven levels on the former