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Recession Stages

The Federal Reserve had to subsequently bail out the repo markets, a secondary financial market tool used by banks to guarantee liquidity, as the FED’s Secured Overnight Financing Rate led to a loss of trust between banks, causing banks to stop trading with each other due to the shortage of liquidity. Coupled with the lack of interest rate hike by the Federal Reserve at the start of this year reflects the dim view held of the US economy as growth has also slowed internationally. Does the United States Controls the world’s monetary flow?

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