Why Did The Fed Inject Banks With A Record Amount Of “Other” Cash In The Past Week? [zerohedge]
Fed did not “inject” anything as zerohedge claims.
Definition: Other Deposits
U.S. law allows a number of government-sponsored enterprises (GSEs) to maintain deposit accounts at the Federal Reserve. Like the U.S. Treasury, these GSEs use their accounts to receive and make payments, which include receipts from issuing debt and payments for redeeming maturing debt. An increase in the line “other deposits” typically reflects a transfer of funds from depository institutions to one or more of these GSEs; thus, an increase in “other deposits” ordinarily is matched by a reduction in deposits held by depository institutions.