If the RRP was lowered, it would have a knock-on effect for all other rates. It would lower USTs, secured financing rates, etc. (SOFR). So if you were to cut the RRP rate by 25bps, it would likely have a similar effect as a Fed Funds Target rate cut.
The Fed could choose to do this, but it would be loosening financial conditions. Right n…
If the RRP was lowered, it would have a knock-on effect for all other rates. It would lower USTs, secured financing rates, etc. (SOFR). So if you were to cut the RRP rate by 25bps, it would likely have a similar effect as a Fed Funds Target rate cut.
The Fed could choose to do this, but it would be loosening financial conditions. Right now they are trying to tighten.
If the RRP was lowered, it would have a knock-on effect for all other rates. It would lower USTs, secured financing rates, etc. (SOFR). So if you were to cut the RRP rate by 25bps, it would likely have a similar effect as a Fed Funds Target rate cut.
The Fed could choose to do this, but it would be loosening financial conditions. Right now they are trying to tighten.
So maybe in less words: yes, inflation fighting