Analysis: U.S. banks face trillion-dollar reverse repo headache https://www.reuters.com/business/finance/us-banks-face-trillion-dollar-reverse-repo-headache-2022-08-02/ Fed reverse repos hit a new record: An unhealthy development https://www.atlanticcouncil.org/blogs/econographics/fed-reverse-repos-hit-a-new-record-an-unhealthy-development/ First Republic, he added, "lost so much in deposits, they have to replace that funding somehow, so they’re doing it with borrowing.” The borrowing will “really weigh on their profitability both in the reported quarter and going forward.” https://finance.yahoo.com/first-republic-stock-plummets-49-after-revealing-deposit-exodus-in-march-133338066.html Note the change in interest expenses due to more expensive borrowings due to deposit outflows: "Following the recent industry developments, net interest income and net interest margin were, and continue to be, materially impacted due to the unprecedented loss of deposits resulting in higher funding costs." https://www.businesswire.com/news/home/20230424005719/en/First-Republic-Reports-First-Quarter-2023-Results "We need a period of slower growth so that the economy, the labor market, and wage growth can cool down. But we do not know of any painless way to reduce inflation." https://www.washingtonexaminer.com/news/jerome-powell-fooled-russian-pranksters
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