Let me take each of those arguments that he made. On the first one, the Fed would be forced to buy Treasuries. Well, or no, I'm sorry, not the Fed. The Banks would be forced to buy Treasuries instead of just parking their money at the Fed. That in and of itself would be a good outcome. Look, there's a lot of concern about a failed Fed auction. If the banks were buying Treasuries, that would create demand for Treasuries. (21:54–21:58)
CLAIM
Asserts that banks would have to buy Treasuries if the Fed stops paying interest on reserves.
This is an excerpt from a raw transcript. The assertions have not been audited or verified. Tap the video to view the source footage and understand the context.
