Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

No, I don’t think it’s a risk premium. It just reflects the 1 or 2 basis point differential for the bank. It just changes their procedures, so it adds to their costs in terms of returning funds earlier and not having additional funds to use for making other payments. Therefore, the bank may hit against its cap earlier in the day. So there is an economic cost, but it doesn’t seem to be a huge one.

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