Ending the repo market blowout and un-inverting the yield curve.
The repo blow-out — whoever instigated it — comes in real handy.
I wish I could have sat in that meeting, watching the bewildered faces of Fed officials as they got hourly updates on repo rates blowing out.
Meanwhile, the Fed relentlessly sheds MBS, replacing them with Treasuries, including short-term Bills.
The hullabaloo in the repo market torpedoed the function of Interest on Excess Reserves and forced the Fed to go back to the future.