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Stan....
I have no idea what the "Master Blaster" is but the Fed can influence the
money markets in a couple of ways. One is moral persuasion....they indicate
to banks that they want higher or lower interest rates. This is generally
done by adjusting the Fed overnight borrowing rate to banks. Another is by
buying or selling federal securities in the open market from or to banks.
When they sell, they take money out of the banking system and when they
buy, they put it in. When they do this they they can influence rates one way
or the other. Finally, the Fed can just flat-ass raise or lower rates....the
impact is much more direct and violent.
Hope this helps out.....
Jerry
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