Lots More with Joe Abate on the Fed's New Target and the Rising Price of Money
Odd Lots3 Okt 2025

Lots More with Joe Abate on the Fed's New Target and the Rising Price of Money

We're used to talking about the Federal Reserve changing "benchmark interest rates." But the mechanics of how the central bank actually tightens or loosens policy are a lot more nuanced. For years now, the Fed's been doing this through the federal funds market — where US banks lend and borrow their excess reserves. But that could be changing. Last week, Dallas Fed President Lorie Logan argued that the fed funds target is outdated, and the central bank should be looking at alternatives. So what would those alternatives actually look like, and why do the intricacies of these short-term funding markets actually matter? We speak with Joe Abate, head of macrostrategy, at SMBC Nikko about this and the broader liquidity picture.

Read More: Logan Ushers in New Era of Debate on Fed’s Key Policy Tool

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Episoder(1190)

36: How A Quant Saw Huge Changes That Took Place on Wall Street

36: How A Quant Saw Huge Changes That Took Place on Wall Street

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36: How A Quant Saw Huge Changes That Took Place on Wall Street

36: How A Quant Saw Huge Changes That Took Place on Wall Street

Emanuel Derman was one of the pioneers of quantitative finance, having gone from studying physics to working on Wall Street in 1985. His memoir, My Life as a Quant, is a must-read book that tracks the...

11 Jul 201629min

35: There Was a Huge Opportunity The Night of the Brexit Vote

35: There Was a Huge Opportunity The Night of the Brexit Vote

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34: The Highway Built by Oil Markets and Political Intrigue

34: The Highway Built by Oil Markets and Political Intrigue

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33: How ``Fed Watching'' Became a Thing

33: How ``Fed Watching'' Became a Thing

When Federal Reserve Chair Janet Yellen speaks, the world watches — and one group watches especially closely. ``Fed watchers'' have made a career out of analyzing and dissecting the words and actions ...

20 Jun 201625min

32: The Amateur Activists Who Took On The Foreclosure Machine

32: The Amateur Activists Who Took On The Foreclosure Machine

The Great Recession was characterized by a historic and gigantic wave of foreclosures all around the country. Left and right, people were being removed from their homes. But because of the explosion o...

13 Jun 201626min

31: Welcome Aboard Starship Bank

31: Welcome Aboard Starship Bank

David Hendler made his reputation as a bank analyst at the independent research firm CreditSights Inc., foreseeing many of the problems that led to the financial crisis of 2008 and vocally criticizing...

6 Jun 201619min

30: How Finance Took Over the World

30: How Finance Took Over the World

The U.S. spends 8 percent of its GDP on finance -- twice the amount it did 40 years ago, according to economist Brad DeLong. That figure set off a wave of soul-searching recently as commentators asked...

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