Excess reserves are getting too scarce as seen in the now positive spread between EFFR and IOER
Fed holds three options:
1: End QT earlier than October
2: Cut IOER without cutting RRP (difficult to communicate)
3: Introduce an open-ended repo-facility pic.twitter.com/E9i9QwU71y
— Andreas Steno Larsen (@AndreasSteno) April 30, 2019