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

In this episode of "Lots More," hosts Tracy Alloway and Joe Weisenthal interview Joe Abate, head of macro strategy at SMBC, about the mechanics of how the Federal Reserve raises and lowers interest rates and how that has changed over time. They discuss the Fed's shift from a scarce reserve regime to an abundant reserve regime, the implications of this shift for the Fed Funds market, and the potential for the Fed to move away from targeting Fed funds in favor of a tri-party repo rate. The conversation also touches on the costs and benefits of running an inefficient balance sheet, the role of stablecoins in the financial system, and the widening of swap spreads around the world.