@jessicainskip: Replying to @tianyuanvid The liquidity sysem!!!! Here is part 2 of explaining the repo market! In part 1: we talked about the repo market this is where banks, primary dealers and non-bank financial institutions. (Money market funds) go to borrow and earn interest from cash. This sets the SOFR. Here is part 2!!!! We are talking about the ample reserves regime and how the overnight reverse repo facility and interest in bank reserves set a floor on the Fed funds rate. The Fed sets interest rate policy and the federal open market committee makes it happen. #repomarket #fomc #monetarypolicy