Economists at the Federal Reserve estimate that the cash lenders stash at the central bank could be more than double the amount they actually need to feel comfortable running their businesses.
The Fed number crunchers, who published their estimates on April 9, guess the total ‘lowest comfortable level of reserve balances’ (LCLoR) in the banking system is roughly $650 billion–900 billion. This denotes the point below which banks would likely try to increase their balances by borrowing cash or
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