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2,000,000,000,000... That is a lot of zeros for the Federal Reserve Debt.

No.
Why do you continue to push this
nonsense?

Paying interest on excess reserves essentially eliminates volatility in the overnight market, creating what is known as a "channel-corridor" system. In essence, the overnight rate cannot fall below the target, and cannot rise above the discount. It is no different than what they can earn in the overnight swap/repo markets.

Its not nonsense Kush and it's a manipulation of short term interest rates. You just repeated that.

They are ( since 2008) attempting to bottom out short term interest rates.

Short term interest rates typically follow the over night rate.

Do you deny this ?
 
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Its not nonsense Kush and it's a manipulation of short term interest rates. You just repeated that.

They are ( since 2008) attempting to bottom out short term interest rates.

Short term interest rates typically follow the over night rate.

Do you deny this ?

Your definition of manipulation is too broad. It is their mandate to do what they can to help alleviate the ongoing ramifications of a "once in a generation" financial crisis.

The interest rate paid on excess reserves is more efficient than strictly using repo and reverse repo to achieve their target.

According to you, the sheer existence of a central bank is "manipulation"
 
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To keep Obama's massive new debt cheap....for now

The Feds started lowering interest rates in 2001 to keep Bush's massive new debt cheap.
 
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