As I understand, a reverse repo is financial institutions buying securities from the FED, hence giving money to the FED? It takes money out of the market? If it's going up, it means they're pulling money from the market, right? And stopping means, no more pulling money out of the market? Hence the dip in 2020, when they were pushing more money into the market?
The economy would crash if they kept pulling more money out. But if they're stopping then how is it gonna crash the economy? Or are you saying that there's still too much money in the market, and if they stop now, there'll be hyperinflation?
As I understand, a reverse repo is financial institutions buying securities from the FED, hence giving money to the FED? It takes money out of the market? If it's going up, it means they're pulling money from the market, right? And stopping means, no more pulling money out of the market? Hence the dip in 2020, when they were pushing more money into the market?
The economy would crash if they kept pulling more money out. But if they're stopping then how is it gonna crash the economy? Or are you saying that there's still too much money in the market, and if they stop now, there'll be hyperinflation?