McCarthy also said even if the ballot measure passes, the sales tax increase won't completely fix the deficit problem; it would only slow down the bleeding and stop draining reserve
funds so quickly.
Of note, Treasury cash balance have been on the rise following the tax date, draining reserves
from the system.
If it wanted the rate to rise, the desk would sell securities, draining reserves
and prompting banks to charge more to lend out what they had left.
Patterson presented to the board a history of the Foundation's income from the IOTA program, its efforts to build reserves, and how the recession and resulting nearly nonexistent interest rates decimated its prime source of income, thereby draining reserves
. Currently, the Foundation gets around $6 million from its IOTA program, but hands out around $12 million in grants--a significantly lower grant amount than just a few years ago.
Ramez said he believes the exchange rate will become stable again when the economy's performance improves, and added that his mission is to "build up a solid reserve through real economic activity and direct and indirect foreign investment, not to eliminate the black market, even at the expense of draining reserves
Summary: Weaker pound would quickly spur export industries; Cenbank support of currency seen draining reserves
; Steady pound needed stability, other analysts argue
"Two tools for draining reserves
from the system are being developed and tested and will be ready when needed.
I would argue that this language contains much more direct and valuable information about the likely path of the short-term interest rate target than does any decision about draining reserves
. Indeed, it will be difficult for market participants to make precise inferences about the timing of increases in the target interest rate from the patterns of reserve draining alone, in part because the FOMC has not specified the path of reserves it intends to achieve before raising interest rates.
The governor is worried that legislators, eager to keep their constituents happy in an election year, would seek ways to paper over the shortfall - draining reserves
, shifting funds forward from future budget periods and using other devices to avoid deep cuts in state services.
"The Fed will have the additional task of draining reserves
and will use a set of instruments to accomplish this.
Other Fed officials have suggested alternative methods such as raising the interest rate the central bank pays on bank reserves or relying on draining reserves
directly from the system through short-term transactions.[Editorial queries for this story should be sent to firstname.lastname@example.org]
"Insurance increases are driving many SMEs out of business, wiping out profits, draining reserves
and in some instances even forcing companies into the shadow economy," he claimed.