Jerome Powell's declaration that the "time is now upon us" for the Federal Reserve to start expanding its balance sheet was a tacit acknowledgement the world's most feted central bank got it wrong.
The Federal Reserve chairman offered no mea culpa for the recent spasm of volatility in the repo market, a consequence of his policymakers miscalculating the reserves needed to ensure the good functioning of the US financial system.
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Robert writes on companies and markets. He is a former New York and Shanghai correspondent, and has worked in Hong Kong. Email Robert at robertguy@afr.com.au
