Fed to lend to CB’s in unlimited quantities (Update2)

[Skip to the end] Functionally, the Fed seems to have agreed to lend USD to the ECB in unlimited quantities unsecured and non-recourse. This defies comprehension. It’s potentially functionally a fiscal transfer. Interesting they have the authority to do that. They wouldn’t even do it for the US banks where the Fed demands collateral for loans. It opens the door [...]